edtechdev/chatbotfiles · Datasets at Hugging Face

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year.
While some grants and scholarships are based on a student’s academic record, many are given to average
students based on their major, ethnic background, gender, religion, or other factors. There are likely dozens or
hundreds of scholarships and grants available to you personally if you look for them.
Federal Grants
Federal Pell Grants are awarded to students based on financial need, although there is no income or wealth
limit on the grant program. The Pell Grant can give you more than $6,000 per year in free money toward
19
tuition, fees, and living expenses. If you qualify for a Pell Grant based on your financial need, you will
automatically get the money.
Federal Supplemental Educational Opportunity Grants (FSEOGs) are additional free money available to
18 https://www.usatoday.com/story/college/2015/01/20/29-billion-unused-federal-grant-awards-in-last-academic-year/37399897/
19 https://studentaid.ed.gov/sa/types/grants-scholarships/pell

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10 • Understanding Financial Literacy

students with financial need. Through the FSEOG program, you can receive up to an additional $4,000 in free
money. These grants are distributed through your school’s financial aid department on a first-come, firstserved basis, so pay close attention to deadlines.
Teacher Education Assistance for College and Higher Education (TEACH) Grants are designed to help
students who plan to go into the teaching profession. You can receive up to $4,000 per year through the
TEACH Grant. To be eligible for a TEACH Grant, you must take specific classes and majors and must hold a
qualifying teaching job for at least four years after graduation. If you do not fulfill these obligations, your
TEACH Grant will be converted to a loan, which you will have to pay back with both interest and back interest.
There are numerous other grants available through individual states, employers, colleges, and private
organizations.
State Grants
Most states also have grant programs for their residents, often based on financial need. Eleven states have
even implemented free college tuition programs for residents who plan to continue to live in the state. Even
some medical schools are beginning to be tuition free. Check your school’s financial aid office and your state’s
department of education for details.
College/University Grants and Scholarships
Most colleges and universities have their own scholarships and grants. These are distributed through a wide
variety of sources, including the school’s financial aid office, the school’s endowment fund, individual
departments, and clubs on campus.
Private Organization Grants and Scholarships
A wide variety of grants and scholarships and are awarded by foundations, civic groups, companies, religious
groups, professional organizations, and charities. Most are small awards under $4,000, but multiple awards
can add up to large amounts of money each year. Your financial aid office can help you find these
opportunities.
Employer Grants and Scholarships
Many employers also offer free money to help employees go to school. A common work benefit is a tuition
reimbursement program, where employers will pay students extra money to cover the cost of tuition once
they’ve earned a passing grade in a college class. And some companies are going even further, offering to pay
100 percent of college costs for employees. Check to see whether your employer offers any kind of educational
support.

Access for free at openstax.org

10.5 • Education Debt: Paying for College

Figure 10.11 Employers in certain fields, such as healthcare, may offer their own grants and scholarships. (Credit: Ano Lobb / Flickr /
Attribution 2.0 Generic (CC-BY 2.0))

Additional Federal Support
The federal government offers a handful of additional options for college students to find financial support.
Education Tax Credits
The IRS gives out free money to students and their parents through two tax credits, although you will have to
choose between them. The American opportunity tax credit (AOTC) will refund up to $2,500 of qualifying
education expenses per eligible student, while the lifetime learning credit (LLC) refunds up to $2,000 per year
regardless of the number of qualifying students.
While the AOTC may be a better tax credit to choose for some, it can only be claimed for four years for each
student, and it has other limitations. The LLC has fewer limitations, and there is no limit on the number of
years you can claim it. Lifetime learners and nontraditional students may consider the LLC a better choice.
Calculate the benefits for your situation.
The IRS warns taxpayers to be careful when claiming the credits. There are potential penalties for incorrectly
claiming the credits, and you or your family should consult a tax professional or financial adviser when
claiming these credits.
Federal Work-Study Program
The Federal Work-Study Program provides part-time jobs through colleges and universities to students who
are enrolled in the school. The program offers students the opportunity to work in their field, for their school,
or for a nonprofit or civic organization to help pay for the cost of college. If your school participates in the
program, it will be offered through your school’s financial aid office.

Student Loans
Federal student loans are offered through the US Department of Education and are designed to give easy and
inexpensive access to loans for school. You don’t have to make payments on the loans while you are in school,
and the interest on the loans is tax deductible for most people. Direct Loans, also called Federal Stafford
Loans, have a competitive fixed interest rate and don’t require a credit check or cosigner.
Direct Subsidized Loans
Direct Subsidized Loans are federal student loans on which the government pays the interest while you are in
school. Direct Subsidized Loans are made based on financial need as calculated from the information you
provide in your application. Qualifying students can get up to $3,500 in subsidized loans in their first year,

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10 • Understanding Financial Literacy

$4,500 in their second year, and $5,500 in later years of their college education.
Direct Unsubsidized Loans
Direct Unsubsidized Loans are federal loans on which you are charged interest while you are in school. If you
don’t make interest payments while in school, the interest will be added to the loan amount each year and will
result in a larger student loan balance when you graduate. The amount you can borrow each year depends on
numerous factors, with a maximum of $12,500 annually for undergraduates and $20,500 annually for

18

year.

While some grants and scholarships are based on a student’s academic record, many are given to average

students based on their major, ethnic background, gender, religion, or other factors. There are likely dozens or

hundreds of scholarships and grants available to you personally if you look for them.

Federal Grants

Federal Pell Grants are awarded to students based on financial need, although there is no income or wealth

limit on the grant program. The Pell Grant can give you more than $6,000 per year in free money toward

19

tuition, fees, and living expenses. If you qualify for a Pell Grant based on your financial need, you will

automatically get the money.

Federal Supplemental Educational Opportunity Grants (FSEOGs) are additional free money available to

18 https://www.usatoday.com/story/college/2015/01/20/29-billion-unused-federal-grant-awards-in-last-academic-year/37399897/

19 https://studentaid.ed.gov/sa/types/grants-scholarships/pell

319

320

10 • Understanding Financial Literacy

students with financial need. Through the FSEOG program, you can receive up to an additional $4,000 in free

money. These grants are distributed through your school’s financial aid department on a first-come, firstserved basis, so pay close attention to deadlines.

Teacher Education Assistance for College and Higher Education (TEACH) Grants are designed to help

students who plan to go into the teaching profession. You can receive up to $4,000 per year through the

TEACH Grant. To be eligible for a TEACH Grant, you must take specific classes and majors and must hold a

qualifying teaching job for at least four years after graduation. If you do not fulfill these obligations, your

TEACH Grant will be converted to a loan, which you will have to pay back with both interest and back interest.

There are numerous other grants available through individual states, employers, colleges, and private

organizations.

State Grants

Most states also have grant programs for their residents, often based on financial need. Eleven states have

even implemented free college tuition programs for residents who plan to continue to live in the state. Even

some medical schools are beginning to be tuition free. Check your school’s financial aid office and your state’s

department of education for details.

College/University Grants and Scholarships

Most colleges and universities have their own scholarships and grants. These are distributed through a wide

variety of sources, including the school’s financial aid office, the school’s endowment fund, individual

departments, and clubs on campus.

Private Organization Grants and Scholarships

A wide variety of grants and scholarships and are awarded by foundations, civic groups, companies, religious

groups, professional organizations, and charities. Most are small awards under $4,000, but multiple awards

can add up to large amounts of money each year. Your financial aid office can help you find these

opportunities.

Employer Grants and Scholarships

Many employers also offer free money to help employees go to school. A common work benefit is a tuition

reimbursement program, where employers will pay students extra money to cover the cost of tuition once

they’ve earned a passing grade in a college class. And some companies are going even further, offering to pay

100 percent of college costs for employees. Check to see whether your employer offers any kind of educational

support.

Access for free at openstax.org

10.5 • Education Debt: Paying for College

Figure 10.11 Employers in certain fields, such as healthcare, may offer their own grants and scholarships. (Credit: Ano Lobb / Flickr /

Attribution 2.0 Generic (CC-BY 2.0))

Additional Federal Support

The federal government offers a handful of additional options for college students to find financial support.

Education Tax Credits

The IRS gives out free money to students and their parents through two tax credits, although you will have to

choose between them. The American opportunity tax credit (AOTC) will refund up to $2,500 of qualifying

education expenses per eligible student, while the lifetime learning credit (LLC) refunds up to $2,000 per year

regardless of the number of qualifying students.

While the AOTC may be a better tax credit to choose for some, it can only be claimed for four years for each

student, and it has other limitations. The LLC has fewer limitations, and there is no limit on the number of

years you can claim it. Lifetime learners and nontraditional students may consider the LLC a better choice.

Calculate the benefits for your situation.

The IRS warns taxpayers to be careful when claiming the credits. There are potential penalties for incorrectly

claiming the credits, and you or your family should consult a tax professional or financial adviser when

claiming these credits.

Federal Work-Study Program

The Federal Work-Study Program provides part-time jobs through colleges and universities to students who

are enrolled in the school. The program offers students the opportunity to work in their field, for their school,

or for a nonprofit or civic organization to help pay for the cost of college. If your school participates in the

program, it will be offered through your school’s financial aid office.

Student Loans

Federal student loans are offered through the US Department of Education and are designed to give easy and

inexpensive access to loans for school. You don’t have to make payments on the loans while you are in school,

and the interest on the loans is tax deductible for most people. Direct Loans, also called Federal Stafford

Loans, have a competitive fixed interest rate and don’t require a credit check or cosigner.

Direct Subsidized Loans

Direct Subsidized Loans are federal student loans on which the government pays the interest while you are in

school. Direct Subsidized Loans are made based on financial need as calculated from the information you

provide in your application. Qualifying students can get up to $3,500 in subsidized loans in their first year,

321

322

10 • Understanding Financial Literacy

$4,500 in their second year, and $5,500 in later years of their college education.

Direct Unsubsidized Loans

Direct Unsubsidized Loans are federal loans on which you are charged interest while you are in school. If you

don’t make interest payments while in school, the interest will be added to the loan amount each year and will

result in a larger student loan balance when you graduate. The amount you can borrow each year depends on

numerous factors, with a maximum of $12,500 annually for undergraduates and $20,500 annually for