Financial aid is not just for college and university students. Many parents wish to send their children to a private school, but the growing cost has caused a lot of issues for families who want a better education for their children. There is various financial aid for private schools available and some of them you may not be aware of.
When you begin your search for financial assistance it can feel a bit overwhelming. You may be bumping into words that you really do not understand and are unsure weather or not your family would qualify for.
Explanation of Financial Aid
Financial aid can look different for each school and may include grants, scholarships, loans, payment plans, and work studies. Explore all your options because many families think they will not qualify for financial aid, and they do. This is money that will come off your child’s tuition bill.
When navigating the waters of financial aid for private schools you may see merit-based aid and need-based aid. It will be important that you understand both and what they can offer your family.
What Is Merit-Based Financial Aid For Private Schools?
As you may have guessed, merit-based will not go off financial need but academic or extracurricular achievements. Scholarships happen to be the most popular form of merit-based financial assistance.
This type of financial aid is offered by:
- nonprofit organizations
- private business owners
- the school itself.
During the process of eligibility, the scholarship committee will consider several factors including:
- GPA
- Test Scores
- Extracurricular activities
Each scholarship will have their own set of guidelines that the student will need to meet. In some cases, a student may need to achieve and maintain a specific GPA to qualify for the scholarship.
You may find smaller private schools offering merit-based financial aid, while larger facilities do not offer this type of assistance. If the school you wish to send your child to does not offer merit-based financial aid, do not give up on this type of assistance. Seek help from outside sources such as employers, nonprofit organizations and community foundations.
Some merit awards may be based on specific criteria, such as the student’s interest in expanding their knowledge in a specific industry. Just make yourself aware of what is out there and study the guidelines to see if your family will qualify. However, if they do not, there are many more options for financial aid for private schools.
An online search will help you find merit-based opportunities for your child’s private school tuition. You may also find that specific scholarships are being offered for students who live in specific states or regions.
U.S. News & World Report stated that, “the average merit-based award in 2019-20 was $11,287. About 22% of all U.S. college students received this type of aid in 2019-20.”
What Is Need-Based Financial Aid For Private Schools?
Need-based financial assistance is by far the most common form of financial aid for private schools.
Need-based assistance includes:
- Institutional grants/scholarships
- State and federal grants
- Federal work-study
- Federal loans
Pell grants are not just for college students. Private schools also accept them, and they are one of the most popular forms of need-based financial aid for low-income families. During the 2020-2021 school year about 6.2 million students received assistance through a Pell grant.
For families that have a larger financial need, you may be eligible for a Federal Supplemental Educational Opportunity Grant. On average students receive up to $4,000 a year to help with tuition costs and other school expenses.
Check with your state government, as most of them offer need-based assistance through grants, tuition waivers, and federal work-study programs. In addition, you may find some private foundations or businesses that also offer need-based scholarships.
Merit-Based vs Need Based Financial Aid for Private Schools
When it comes to how money is used or applied to your child’s tuition bill, there is no difference between merit-based and need-based aid. The biggest difference between the two is how you apply and qualify for them.
For families who are not considered low-income, merit-based aid will be more suited for you. Merit-based aid will place a focus on your child’s achievements including grades, community service, and athletic achievements.
You will want to always encourage your child to work hard to maintain good grades. These programs typically require that your child has at least a 3.0 GPA. In addition, testing high on the ACT or SAT can help increase your chances of receiving merit-based aid.
Need-based aid goes more on your families monthly or yearly income. This is the biggest difference between the two, but you may want to apply for both because you never know what may be decided.
What Other Options of Financial Aid Are There?
Now that you understand the difference between merit-based and need-based financial aid let’s explore other options to help pay for your child’s private school education.
You want the best education possible for your child, and there are many ways you can achieve this.
- Private Loans- this is typically an unsecure loan, which may have a high interest rate.
- Home Equity Loan – If you have equity in your home, you may be able to borrow from it to help pay for your child’s tuition to private school. These loans will have a better interest rate than an unsecure private loan.
- Payment Plans – Check with the school because they may offer a payment plan, which means you will pay for your child’s tuition a little at a time. It is different for every school but most break payments into three to ten payments to help parents.
Explore all your options when it comes to financial aid for private schools. Do not give up on giving your child the education that they deserve.
