Grants and Scholarships are two ways to fund a college education. In addition, there are several other sources of money for college.

The first source is the money your family provides. When you fill out a FAFSA, the free application for federal student aid, you will receive a number called the Expected Family Contribution. This is the amount that your family is supposed to come up with from their income and savings. Your savings and work earnings are supposed to be tapped for this as well.

To help your family minimize its required contribution, you can seek out grants and scholarships.

Scholarships are merit aid that do not have to be paid back. They generally do not require that you do anything during the scholarship as they are awarded based on past performance. However, some scholarships are valid for multiple terms as long as you continue to perform in ways such as doing community service or maintain a certain grade point average.

Similar to scholarships are grants. Grants are institutional or government aid that is free money based on qualifications and need. The Pell Grant is the federal government’s largest grant program. Individual states also offer grant money for residents attending in state schools.

If grants and scholarships do not cover the bill, there are two other ways to finance college.

Work study is the next level of aid. This is money that is provided by the government to the schools so that they can hire needy students to work on campus. Be aware that if you get this aid, you may be better off taking a job off campus instead because off campus jobs can pay better and offer more hours.

The final kind of aid is loans. Subsidized Stafford loans do not accrue interest as long as you are a full time student. Other loans begin to accrue interest right away. All students qualify for Unsubsidized Stafford Loans, so if you cannot meet your EFC, this is an option. Parents who wish to help their children attend school can take out the PLUS loan.

There are many different ways to finance a college education. Don’t let money stand in the way of preparing for the future. Seek out grants and scholarships that don’t have to be paid back to pave your way.