Why Scholarships are Better Than Student Loans
Even after all the battles you have won in applying to schools and getting accepted, there will most likely still be work to get done when it comes to paying tuition. There are two avenues you can take to address this problem: scholarships or student loans. Most families will need to take out student loans to pay for college, but that doesn’t mean mountains of student debt is inevitable. Smart families will be sure to do a free scholarship search to discover scholarship opportunities that help pay for tuition, so they don’t have to take out as many student loans. But there’s more to scholarships than just paying for college.
Let’s take a look at 5 reasons why scholarships are better than student loans:
No Repayment
The biggest difference between the two is fairly obvious. Student loans are just that, loans, and they must be paid back. Loans will start accruing interest as soon as you begin college, and while some loans will not expect repayment while you are in college, you will need to start repaying them soon after graduation. This is why scholarships, which are granted instead of loaned, are so important. Even if you are not getting a “free ride” that comes with full tuition aid, any money you do not have to pay back is essential.
Lower Tuition
Another great thing about scholarships: the majority of them will be paid directly to your university. This means that your tuition will be lowered and you can go from there to assess how much you will need for the remaining course fees. With scholarship money already applied your tuition, you can budget your housing, books, meals and transportation fees; and make informed decisions about your money and expenses.
Networking Scholarships can be related to your school, government groups or athletics, to name a few. Some of them require special essays or projects. These programs will bring to your attention different communities of people that have the same interests as you. Make sure to strike up a conversation at a ceremony or in an online group related to your award.
Motivation
When you are awarded a scholarship, it doesn’t end there. Most likely you will have to keep up your GPA in certain, or all, of your classes. This is a great way to get motivated and excited about your academic performance. You earned this money because you are doing great work, so keep it up! Challenge yourself to be the student you aspire to be.
Distinction
Many scholarships are highly selective, and you will have distinguished yourself from other students by winning them. You may be sought after for opportunities and placements by having proved your worth. Be sure to put the scholarships you won on your student resume when applying to summer jobs or internships.
You can learn about scholarships in several ways, including contacting the financial aid office at the school you plan to attend and checking information in a public library or online. But be careful. Make sure scholarship information and offers you receive are legitimate; and remember that you don't have to pay to find scholarships or other financial aid. Check out our information on how to avoid scams.
Try these free sources of information about scholarships:
the financial aid office at a college or career school
a high school or TRIO counselor
the U.S. Department of Labor’s FREE scholarship search tool
your state grant agency
your library’s reference section
foundations, religious or community organizations, local businesses, or civic groups
organizations (including professional associations) related to your field of interest
ethnicity-based organizations
your employer or your parents’ employers
A scholarship might cover the entire cost of your tuition, or it might be a one-time award of a few hundred dollars. Either way, it’s worth applying for, because it’ll help reduce the cost of your education.
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