The Ultimate Guide to Understanding Grants, Loans, and Scholarships for Nursing School

The Ultimate Guide to Understanding Grants, Loans, and Scholarships for Nursing School

You dream of becoming a nurse. But, figuring out how you’ll pay for college can be overwhelming. In fact, it’s so scary that you keep putting your dreams on the back burner. Sound familiar?

Well, you’re not alone. A study released earlier this year asked participants why they didn’t attend college. More than one-third of those surveyed said it was too expensive or they didn’t want to take out loans. The fear of going into debt to pay for nursing school keeps many people from advancing their careers. 

We believe there is a way to pay for nursing school that won’t break the bank. The first step to paying for college is understanding the various types of financial aid available and if you might qualify. 

How Can You Pay for Nursing School?

Most people interested in nursing school have a learning curve regarding financial aid. One of the most common questions prospective college students ask is, “How are grants and scholarships different from student loans, and how do I apply?.” 

Before we dive into the differences between these three types of financial aid, it’s essential to know that most nursing schools can accept grants, loans, and scholarships awarded to you. However, asking the school if they take financial aid before you enroll is good practice. One way to do this is to ask if they are accredited. Several accrediting agencies in the U.S. ensure the general education provided by the college is one of quality. In addition, accredited schools can accept all forms of financial assistance, offer easier processes for transferring credits to another school, and provide you with a greater chance of landing a job after graduation. 

Now that you understand what types of colleges accept financial aid let’s dive into the differences between grants, scholarships, and loans. 

Understanding Grants

Grants are gift aid that doesn’t have to be earned or repaid. Instead, you qualify for grants based on financial need, defined as the difference between the cost of attending the college you choose and your expected family contribution. The state and federal governments provide grants. Some state grants have an income cutoff, meaning you only qualify if you make less than a specific amount. In contrast, the Federal Pell Grant does not. 

To apply for grants, you’ll need to file the Free Application for Federal Student Aid, often called FAFSA, at fafsa.ed.gov. You should complete this application as soon as you start seriously looking at colleges. Once accepted, the college will send you an award letter detailing any grants offered.

Understanding Scholarships

Scholarships are another form of gift aid given to cover college-related expenses. This type of financial support may be awarded based on any number of criteria but is most commonly offered based on financial need or academic achievement. Community-based organizations, charities, or other foundations give scholarships to set you up for future economic and career success by helping you pay for college. 

Because scholarships are gifts, you don’t have to pay any of the funds back. However, you will need to complete an application and meet the application deadlines set by the donor. Application processes often include providing demographic information, writing essays, and attending an interview with a panel of donor representatives. These activities help the scholarship fund get to know you and your goals to select the best scholarship recipient. 

You can find scholarships by connecting with local, state, and federal organizations or conducting an online search. A few best practices to keep in mind when looking for scholarships include:

• Look for scholarships given to recipients based on where you live  
• Find organizations related to nursing and healthcare
• Search for scholarships that align with your ethnicity or other unique characteristics
• Apply to professional associations that offer scholarships to become eligible 
• Talk to your employer about scholarships or additional financial college support 

Understanding Student Loans

A loan is money given to you by a bank or financial institution that must be repaid. You’ll have to pay back the full amount of the loan and any interest you accrue. The government and private institutions can offer you loans based on the information you provide in the FAFSA. Specific terms and conditions may vary from one loan to another. The following are a few to consider:

• Fixed or variable interest rates
• How long you have to repay
• How your credit score affects the amount of money you can borrow

When offered loans, you may encounter unfamiliar terms, like unsubsidized and subsidized. The main difference between these two types of loans is how interest accrues and how it affects your total payback amount.

A subsidized loan is based on need. You won’t have to repay any interest accrued during school because the government pays it for you. As long as you are enrolled at least half-time and graduate with a degree, your payments won’t start until six months after graduation. This plan gives you plenty of time to find a job and start making a higher income before you start repaying. 

Unsubsidized loans are available regardless of financial need. However, interest starts accruing once the loan is dispersed to you or your college. This means the total amount you must repay is higher than with a subsidized loan of the same amount. For example, suppose you accept an unsubsidized loan at the beginning of a two-year nursing program. You’ll accrue interest the entire time you’re in school, even though you don’t have to repay the loan until six months after graduation. 

Set Yourself Up for Success

Paying for college doesn’t have to be overwhelming. However, it does take a little knowledge and a lot of work to find the right balance of money you do and don’t have to repay. NurseDash wants to be your career advancement partner. We can help you search for scholarships and other financial support to advance your dream of becoming a nurse! To get started, send us an email at education@nursedash.com today.