When do you repay money granted through a scholarship?
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With the costs of attending college rising exponentially, many students are concerned about when to repay money granted through scholarships and student loans. The current outstanding student debt balance for students has risen to a whopping $1.75 trillion dollars.
More than 50% of students at both private and public institutions seek further support to fund their education expenses. When it comes to paying tuition, students rely on federal student loans, federal financial aid, their college's financial aid office, pell grants, and scholarships. You can learn more about the student loan crisis in this overview.
Each of these external resources differs in what financial situation they leave you in upon graduating college. Amongst them, scholarships and grant money are sought out the most because they are considered "free money" that you do not have to pay back.
Scholarships are a source of funding for undergraduate students to pay for college. This money is typically awarded based on merit or need-based assistance. Scholarships are funded by donors who aim to provide qualifying students an opportunity to receive aid without it costing an arm and a leg to attend.
These donations are intended to lower average student loan debt and simultaneously give deserving students a chance to pursue higher education. For many families, it is unaffordable to even qualify for thousands of dollars worth of student loan debt. Need-Based scholarships are intended to bridge the educational gap by giving more opportunities to low-income students who have limited avenues to turn.