Scholarship Search Secrets
Find FREE Money for College
Make optimal use of Internet technologies to find scholarships.
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Welcome to Scholarship Search Secrets, a publication of the Student Loan Network. In this guide, you'll find today's top secrets for finding college scholarships at little or no cost to you except your time. You'll learn how to maximize your free financial aid with search engine tips and tricks, online resources, and personal branding to work for you and your college education.
A Brief Overview of Financial Aid
Before we begin, it's important to review the basic components of financial aid. Financial aid is a broad term encompassing all the different ways to pay for higher education. Financial aid typically falls into three broad categories: scholarships and grants, federal student loans, and private student loans.
Scholarships and grants. Scholarships and grants are the best form of financial aid because in all but a few cases, you never have to repay the money you receive. Scholarships tend to be awarded based on demonstrated financial need or applicant's merits, while grants tend to be awarded based on field of study or focus (with the exception of federal grants, which are need-based, such as the Pell Grant). For this guide's purposes, the terms will be used interchangeably.
Federal student loans. Federal student loans are student loans that are backed by the U.S. Government. They typically have fixed interest rates and must be repaid over a period of ten years. Federal student loans also offer borrower protections such as loan deferments and loan forbearances that allow borrowers to temporarily suspend their payments, as well as loan forgiveness or loan cancellation. Federal student loans may be issued by the government or by a private company such as the Student Loan Network.
Private student loans. Private student loans are loans that are backed and issued by private companies. They typically have variable interest rates and usually have less favorable terms than federal student loans. Private school loans are often used to "fill the gap" between federal financial aid and any remaining expenses.
Generally speaking, apply for scholarships and grants first, then federal student loans, and finally private student loans as needed. Unless it's to earn frequent flyer miles or other rewards and you have the cash on hand to immediately pay off the debt, avoid using credit cards and other forms of high-interest loans to pay for higher education expenses.
