Montana Student Loans, Scholarships, and Grants

College can be expensive, but fortunately for Montana residents, the state boasts the third-most affordable public tuition in the nation, with average in-state tuition and fees of $6,410 at schools like Montana State University. However, even with more affordable rates, the cost of college can still be difficult to manage, and many students will need to consider financial aid.

On this page:

• Getting Financial Aid for College
• State-Based Student Loans in Montana
• Montana College Scholarships
• Montana Grants for College

Getting Financial Aid for College

There are many things you can do to help increase the likelihood that you’ll receive financial aid, but the following steps will be crucial to your success:

• Complete the Free Application for Federal Student Aid (FAFSA). The FAFSA is your key to accessing federal grants and student loans; however, you’ll also find that it’s often a requirement when applying for some scholarships. The FAFSA also calculates your Expected Family Contribution (EFC), which will be used to determine eligibility for federal grants and loans, as well as some private or state grants and scholarships.
• Determine how much it will cost to attend the school of your choice. The overall price includes tuition, fees, and books, as well as room and board, if necessary. Then determine how much you can afford to pay out of pocket. The gap between the two numbers will indicate how much financial aid you’ll need to secure.
• Identify grants and scholarships that you may be eligible for. You can find these in a variety of places, including online databases, your high school guidance office, and college or university financial aid offices.

However, as a Montana resident, you should also visit the Montana Higher Education Student Assistance Corporation website for resources. This nonprofit organization helps citizens fund their post-secondary education aspirations. In addition to purchasing federally guaranteed rehabilitation education loans, it also works with its public benefit partner, Reach Higher Montana, to provide a variety of scholarships.

State-Based Student Loans in Montana

While many students rely on federal student loans, they don’t always cover the full cost of attendance. Private student loans offer one way to fill the gap. There are a number of options when it comes to selecting a private student loan lender, but students from Montana may want to consider local credit unions and banks, including the following.

First Montana Bank — iHelp Student Loan

First Montana Bank works with the iHELP Student Loan program to offer student loans of up to $100,000 to undergraduate students, with variable interest rates between 5.18% and 9.63% and repayment terms up to 20 years. Hybrid rates, which adjust every five years, are also available from 5.52% to 9.09%.

To qualify for this loan, you must be at least 18 years of age and have at least three years of positive credit history. Borrowers who cannot meet those requirements can apply with a cosigner who does.

There are a few perks associated with an iHelp Student Loan, including the ability to secure a 0.25% rate discount when you sign up for automatic payment. Further, both deferment and forbearance options are available for those who qualify.

Despite the perks, it’s important to note that the cosigner release time is 24 months, which is longer than other similar products on the market.

Missoula Federal Credit Union — Student Choice Undergraduate Line of Credit

Missoula Federal Credit Union’s Student Choice private loan solution offers undergrads up to $40,000 per single line of credit, with variable interest rates ranging from 8% to 9.75% and repayment terms up to 20 years.

To be eligible for this loan, you must be continually enrolled in a program that will result in a degree; however, borrowers can be enrolled less than half-time over the summer. Further, you must meet your school’s minimum Satisfactory Academic Progress (SAP) requirements. This line of credit is based on creditworthiness, and those considering this option should contact the Missoula Federal Credit Union for more information on eligibility.

Unlike traditional student loans, the Student Choice Undergraduate Line of Credit allows you to draw from the total amount according to your school’s disbursement cycle. There is no need to reapply every year. This unique financing option eliminates much of the ongoing paperwork often required of private loans.

However, the interest rates are higher than those attached to many traditional private student loans. Further, if you choose to take the summer off, your line of credit may be closed or you may prematurely enter repayment.

>> Read More: Student loans offered by states

Montana College Scholarships

Since there are no repayment obligations, a scholarship can be an excellent way to pay for part of your education. There are a number of ways you can find scholarships, including websites like LendEDU, Fastweb.com, and Collegeboard.org, but it’s also helpful to consult with your guidance counselors as well as the financial aid department at your chosen school.

You may be eligible for the following Montana scholarships:

Gianforte Manufacturing Scholarships

• Scholarship amount: $1,000 for full-time students; $500 for part-time students
• Eligibility requirements: Applicants must be Montana residents and enrolled in at least six credits in a qualifying technical or manufacturing program at a participating institution. Further, students must be in good standings with the selected school and have filed a FAFSA and have an EFC of less than $10,000.
• Deadline to apply: December 31 (priority); January 31 (final)

Reach Higher Montana Scholarships

• Scholarship amount: $1,000
• Eligibility requirements: Both Montana high school seniors and Montana residents who graduated from a Montana high school and are attending a college or university are eligible, as long as they plan to attend at least half-time, maintain a GPA of 2.5 or higher, and have submitted the FAFSA for the intended scholarship year.
• Deadline to apply: December 1

Kelly Kuntz Memorial Scholarship

• Scholarship amount: $2,000
• Eligibility requirements: Applicants must graduate from a Montana high school, have a GPA of 2.5 or higher, and be enrolled in their 2nd, 3rd, or 4th post-secondary year. Business majors and Montana High School Business Challenge participants are given preference.
• Deadline to apply: May (check with the Montana Chamber of Commerce for 2019 deadline)

Montana University System American Indian Undergraduate Tuition Waiver

• Scholarship amount: Varies based on tuition total
• Eligibility requirements: Though this isn’t a “scholarship” in the traditional sense, Montana University System students who are at least one-quarter American Indian or are enrolled members of a recognized Montana Indian tribe may qualify to have their tuition waived. Applicants must also submit a FAFSA, complete the American Indian Undergraduate Tuition Waiver, and be a Montana resident for at least 12 months.
• Deadline to apply: Contact your school for dates

Montana Grants for College

While grants and scholarship are similar in that they don’t require repayment, they do have some significant differences. One of the major distinctions between the two is that grants are typically awarded based on financial need. Scholarships, on the other hand, are usually based on merit (grades, athletic performance, etc.). Grants are typically provided by the federal and state government, as well as universities and colleges, while scholarships are typically awarded by private organizations.

In the past, Montana residents could apply for the Montana Higher Education Grant and the Montana Tuition Assistance Program. Unfortunately, these programs have been discontinued. Today, funding largely comes from federal grants such as the following (for specific requirements and deadlines, please visit StudentAid.gov).

Federal Pell Grant

• Grant amount: Up to $6,095
• Eligibility requirements: A recipient must be an undergraduate student enrolled at least part-time in an eligible degree program. Further, they must complete the FAFSA and show need as defined by the Department of Education.
• Deadline to apply: June 30

Federal Supplemental Educational Opportunity Grant

• Grant amount: Up to $4,000
• Eligibility requirements: Recipients must complete the FAFSA, meet the Pell Grant requirements above, and be enrolled at least half-time in an eligible degree program.
• Deadline to apply: Contact your school for dates

TEACH Grant

• Grant amount: Up to $4,000
• Eligibility requirements: Recipients must complete the FAFSA and the TEACH Grant application; meet the basic requirements for all federal student aid programs; be enrolled as an undergraduate, postbaccalaureate, or graduate student in an eligible program at a school that participates in the TEACH Grant Program; and be in the 75th percentile on college admissions tests or have a cumulative GPA of 3.5 or higher. Additionally, they must agree to complete a term of service after graduation.
• Deadline to apply: Contact your school for dates

Bottom Line

Attending the college of your choice is an important step towards your professional and personal future, but you may not be able to reach your goals without leveraging some type of financial aid. If you’re a Montana resident, take the time to hunt down available scholarships, apply for federal grants, and if all else fails, look for a private loan that suits your needs.