College is expensive these days, with in-state tuition at universities currently costing approximately $10,000 a year on average. As costs have steadily risen, more students have borrowed to finance their education. Federal student loan debt now tops $1.6 trillion, while private student loans account for tens of billions more. And yet, billions in scholarship and grant money goes unclaimed each year.
Pell Grants are the biggest source of unused funds. Approximately half of all high school graduates in the United States are eligible for Pell Grants, which provide money for low-income students. Regardless, students graduating high school in 2021 left $3.75 billion on the table, according to a National College Attainment Network (NCAN) analysis.
Meanwhile, the National Scholarship Providers Association (NSPA) found that roughly $100 million in private scholarships goes unawarded each year. Still, scholarships awarded are on the rise, having grown by nearly 50 percent over the last decade.
Education-related debt is the fastest-growing source of debt in the United States and the average borrower now owes about $38,000. Spending some time vying for scholarships and seeing if you or your loved ones qualify for Pell Grants may help students avoid at least some debt.
Tight on funds? Even after applying for every scholarship under the sun, you may come up short. Consider community colleges, which still offer an affordable education. The average public university charges more than $300 per credit hour for in-state students. Community colleges, on other hand, charge about $100 per credit hour. Often, you can transfer credits to universities, thus lowering costs if you complete a four year degree.
