The average cost of college is $36,436 per student per year in 2023, according to the Education Data Initiative. But you may not have to pay for the full cost of your attendance.
Before turning to student loans or dipping into your savings, consider the following free ways to get money for college.
The Rising Cost of College
College costs have more than doubled in the U.S. since the year 2000 — and have increased at an annual growth rate of 2% over the past 10 years.
The total cost of a bachelor’s degree today, and 30% of attendees borrow money to pay for college. However, as a student, you can avoid unnecessary debt by exhausting your gift aid avenues before seeking loans.
[READ: Ways to Save for Your Child’s College Education]
Where to Get Free Money As a Student
The two main ways to get free money for college are through grants and scholarships.
Grants
A grant is an amount of money an organization gifts to a student, often due to their level of financial need. Unlike a loan, it doesn’t come with costs or require repayment.
The federal government offers a variety of grants to help pay for college or career school, including the Pell Grant, Federal Supplemental Educational Opportunity Grants (FSEOG), Teacher Education Assistance for College and Higher Education (TEACH) Grants and Iraq and Afghanistan Service Grants.
You can apply for them all by filling out the Free Application for Federal Student Aid (FAFSA) each year you plan to attend school.
Many colleges offer grants as well.
“The common misconception is that most aid comes from the government, and it is true – primarily in the form of loans. But for grants, the majority come from the colleges themselves,” says Jack Wang, a wealth advisor and college financial aid advisor at Innovative Advisory Group.
You can also find grants from state governments, career schools and nonprofit organizations.
[READ: Smart Ways to Gift Money to Children.]
Scholarships
Similar to a grant, a scholarship is an amount of money that an organization gifts to a student. Instead of being solely based on financial need, however, organizations may also award them based on academic merit, athletic skills, diversity support and more.
“Prospective students should contact their financial aid office about the process for applying for scholarships as different institutions have different processes,” says Deborah Agee, executive director for financial aid and scholarships at the University of California, Davis.
Mike Hunsberger, a chartered financial consultant and the founder of Next Mission Financial Planning, adds that understanding the business models and aid processes of colleges can help students shop smarter.
“While Ivy League and other top schools will provide need-based aid, they don’t provide any merit aid or scholarships for achievement. Other schools that are competing for students offer merit-based scholarships that can be based on class rank, test scores or GPAs,” he says.
Beyond colleges, many organizations offer scholarships, including employers, individuals, nonprofits, communities, religious groups, private companies, and professional and social organizations.
[Read: Qualified Expenses You Can Pay for With a 529 Plan]
How to Find Free Money for College
A good place to start your search for free money for college is with the FAFSA. Federal student aid can help cover tuition, books, supplies, room and board, transportation, dependent care and more.
If you aren’t sure which school you’re going to attend, you can list several on your application and compare the award letters you receive.
Beyond the FAFSA, you can look for grants, scholarships and other gift-aid opportunities through:
— The financial aid office at your school.
— Your high school counselor.
— The free scholarship search tool.
— Your state’s authority on education.
— Various employers and organizations.
“Look all around you. Great places to apply for scholarships, awards or prizes are a student’s place of worship; their parent’s employer; community organizations like the Lions Club and Soroptimist International and national organizations like the Bill and Melinda Gates Foundation,” Agee says.
“All seniors should be aggressive about doing their research, completing applications and writing those essays. My best advice: Don’t be afraid to compete,” she says.
More from U.S. News
What’s a Pell Grant? How It Affects Student Loan Forgiveness
5 Ways to Pay for Community College
10 Financial Aid Tips for College Students
How to Get Free Money as a Student originally appeared on usnews.com
