Ready, Set, School

Interactive Video

[A young man sitting on a small rug in a college dorm room. He has a laptop on his lap and is writing in a book with his free hand. He is leaning against an unmade bed and a pair of previously worn socks are lying beneath a chair beside him.]

Narrator: How do U.S. students cover the high costs of education and training?

[A group of high school graduates wearing caps and gowns.]

The Education Data Initiative reports that the average cost for tuition plus living expenses for students in the 2023–2024 school year is $36,346. 

[A young woman sitting on a couch, reading a textbook titled “Java.” She has 3 more computer science textbooks beside her.]

The average cost has more than doubled since 2000, with a 2 percent yearly growth rate in the last 10 years.

[A line graph titled, Average tuition plus living expenses. The x-axis is labeled, years, and the y-axis is labeled, annual tuition, room, and board. The data points are: 2000, $15,003; 2005, $19,609; 2010, $23,187; 2015, $28,225; 2020, $34,014; 2023, $36,346.]

Wow! How can anyone afford that? Most families save what they can, but it’s often not enough to cover all the costs.

[A young man looking frustrated with a thought bubble that says, “How can anyone afford that?” A young woman with her hands up in exasperation with a thought bubble that says, “We’ve saved what we can…” A young woman with her hand over her face looking discouraged with a thought bubble that says, “It’s not enough.”]

For college, trade schools, and other kinds of training, students turn to grants, scholarships, and loans.

[A smiling group of high school graduates wearing caps and gowns.]

In the United States, a massive $234 billion in education funds are available each academic year from various sources.

[An outline of the United States with the text “$234 billion” in the center.]

Funds are categorized by need, so students can qualify for different types of funding based on their personal situations.

[A graphic organizer, labeled “funds” in the center with 6 extensions, all labeled “need.” The word “need” then disappears from each circle and is replaced with the smiling face of a potential college student.]

[On screen text]: Explore Financial Aid Options. Select each card.

Card 1

Front: grants

Back: Grants, which are need-based and do not need to be paid back. Grants are available from federal, state, and local governments; schools; and nonprofit organizations. 

Card 2

Front: loans

Back: Loans from the federal government or private loan companies, which need to be paid back with interest, generally after graduation or leaving school.

Card 3

Front: scholarships

Back: Scholarships, which are awarded based on academics or need. They do not need to be repaid.

Card 4

Front: work study

Back: Work-study programs, in which students work to pay toward their tuition.

The federal and state governments award grant money to more than 50 percent of U.S. college students every year.

[Animation: money moving a federal building icon and a state building icon to a pie chart labeled with “more than 50% of U.S. college students every year.”]

And shockingly, about $2 billion in grant money goes unclaimed each year, most likely because people don’t know the money is available.

[Animation: The lid slides off a trash can and a pile of cash labeled “$2 billion” enters the trash can.]

Colleges and universities also award grant money to more than half their students.

[Two rows of ten person-shaped icons. Every other icon is highlighted.]

And don’t discount the idea of private schools, even though they look a lot more expensive on paper! Private schools generally have a lot of endowments that allow them to award scholarships and grants that help level the tuition playing field.

[A young man sitting at a desk writing in a notebook. There is a baseball next to him and a tablet on a tablet stand in front of him. An icon representing a private school building appears along with an icon that represents a scholarship and a second icon representing a grant.]

And there are scholarship funds aplenty in your local area. Some are for general education needs and some focus on specific industries or skills. Each scholarship identifies criteria for its applicants.

[A 2-way street sign. One sign says, local, and the other sign says, scholarships.]

Start investigating the process at FinancialAid.org. The site offers all kinds of information about available funding, calculators, and resources.

[A computer screen with a search bar containing the website address, https://finaid.org/]

There is some legwork involved to find and apply for funding, but it’s worth the effort! This is a great example of positive debt, if you have to take loans, to invest in your future!

[A young man sitting on a small rug in a college dorm room. He has a laptop on his lap and is writing in a book with his free hand. He is leaning against an unmade bed and a pair of previously worn socks are lying beneath a chair beside him.]