In the coming months, more students will visit the financial aid office for help with the FAFSA and college loan applications. Although borrowing money to pay for college is a good option for many, it’s important to encourage students to research and apply for scholarships and grants before considering loans.

Scholarships and grants, or gift aid, are the ideal form of financial aid for students because, unlike loans, they don’t have to be repaid. Unfortunately, many students don’t bother applying for gift aid because they believe their grades aren’t good enough.

Remind students there are many unique scholarships offered by a variety of sources that want to invest in higher education. With so many options, it’s a mistake for anyone to assume they won’t be eligible for a scholarship or grant.

Scholarships are not only awarded for merit in academics, athletics, or a particular field of study. Many are also awarded based on ethnic background, religious affiliation, and special interests. Students should research all possible sources of scholarships and grants in their local community and state, such as schools, colleges, religious, and civic organizations.

Below is a rundown of some obvious – and some not so obvious – sources students can use to find scholarships and grants.

High School Counselors and Teachers
Students should discuss college majors and career possibilities with teachers and counselors to get suggestions on the types of scholarships available for someone with their interests.

High School Library, Public Library, or Bookstore
Libraries and local bookstores almost always carry directories and guides on scholarships. Students should talk to their school librarian for more information.

The Internet
Many Web sites like Adventures In Education, FinAid!, and the Princeton Review’s Web site provide free scholarship searches.

Colleges and Universities
The college or university a student plans to attend can help with finding scholarship programs. Students can call the admissions office or financial aid office and ask for help on finding scholarships. Colleges and universities are also good places to find out more about scholarships offered by state and local government agencies.

Parents’ Employers
There may be a scholarship fund or program available to students through the company where their parents or guardians work

Churches, Synagogues, or Other Religious Organizations
Religious organizations have very long histories of creating programs to help youth with education. Students should speak with their minister, rabbi, priest, or other religious leader about available scholarship programs

Local, State, and National Businesses
Many types of businesses contribute in some form or other to scholarship funds for students — it's part of their responsibility to participate as positive members of their community.

Branches of the Military
All branches of the military have programs to provide scholarships to students. In most cases, the student will likely have to serve in some form or capacity to become eligible. Many students who need assistance to attend college and also want to develop leadership skills and work experience serve in the military and then go to college on military-funded cholarships.