Loans vs. Grants: Making Sense of Financial Aid for Beauty School

For most future students, the biggest question about beauty school is not whether to go. It is how to pay for it. The two most common forms of federal financial aid, grants and loans, work in very different ways, and understanding that difference is the foundation of a smart plan. Here is a plain-language look at both, and at how to find out what you may qualify for.

• Grants are typically need-based and in most cases do not have to be repaid
• Loans are borrowed money that must be repaid with interest, whether or not you finish your program
• Everything starts with the FAFSA, and our admissions team can walk you through it

Start With the FAFSA

The Free Application for Federal Student Aid, better known as the FAFSA, is the single form that determines your eligibility for federal grants and loans alike. It is free to file at studentaid.gov, and when it asks for a school code, ours is 041745. The FAFSA looks at your financial picture and produces an aid offer specific to you. That is worth underlining: financial aid is available to those who qualify, and not every applicant qualifies for every type. The only way to know what your options actually are is to file and see.

How Loans Work

Loans are borrowed money, and they must be repaid with interest, whether or not you complete your program and whether or not the career unfolds the way you planned. Federal student loans come in two main forms. Subsidized loans are need-based, and the government covers the interest while you are in school. Unsubsidized loans are not need-based, and interest begins accruing right away. Loans can absolutely be a reasonable way to invest in your training. The rule of thumb is simple: borrow only what you need, and know your monthly payment before you sign, not after.

How Grants Work

Grants are the form of aid everyone hopes for, because in most cases they do not have to be repaid. The most common is the federal Pell Grant, which is awarded primarily on financial need. Grant amounts vary from person to person and from year to year, so no school can promise you a number in advance, and you should be cautious of anyone who does. One honest caveat: if a student withdraws early in a term, federal rules can require a portion of grant money to be returned. Finish what you start and a grant is, in effect, an investment someone else made in your career.

Do I Qualify?

A sensible order of operations: file the FAFSA, accept any grant aid you are offered first, and then decide deliberately how much, if anything, to borrow. Read your aid offer line by line, and notice which numbers are gifts and which are debts, because the offer letter lists them side by side. If anything in the offer is unclear, ask. This is exactly the kind of decision that deserves questions, and our admissions team answers them every day. They can help you understand your offer, gather documents, and keep track of deadlines. What they will not do is promise you aid before the FAFSA says what you qualify for, because no honest school will.

If cost has been the thing holding you back, replace guessing with facts. File the FAFSA with school code 041745, then call 505.294.5333 or visit avedanm.com to talk through your results with our admissions team.

Aveda Institute New Mexico
1816 Central Ave SW
Albuquerque, NM 87104
505.294.5333