Financial Aid for LGBTQ+ College Students

College is becoming costlier for everyone. However, LGBTQ+ students struggle more with financial challenges — like homelessness, poverty, unemployment, and barriers to healthcare — than their cisgender heterosexual (cishet) peers.

LGBTQ+ students can also face institutional barriers when paying for college and paying off student loans. Transgender and nonbinary students may need to complete the Free Application for Federal Student Aid (FAFSA) with information about their “sex assigned at birth” and not their gender identity.

Plus, they may lack support or cooperation from their families. A 2018 Human Rights Campaign survey reported that just 24% of LGBTQ+ youths could definitely be themselves at home. Almost 70% heard their families negatively comment about LGBTQ+ people.

Some college students may not even have the means to get a loan if they are estranged from their family because of their identity and have no one to cosign for them. This makes their options more limited, said Daniella Flores, queer financial blogger and founder of I Like to Dabble.

Here’s what LGBTQ+ students need to know about paying for college and budgeting for life beyond.

Find some financial aid resources and tips for LGBTQ+ students below.

Schools, states, and the federal government award college grants to students to help cover education costs. Unlike scholarships, grants are typically based on financial need and not merit or academic performance. You may become eligible for grants by completing the FAFSA.

All students should complete the FAFSA — you could qualify for free money. But LGBTQ+ students may face challenges when it comes to completing the FAFSA.

Student loans can be federal or private. Federal loans tend to have lower, fixed interest rates than private student loans.

Federal student loans can be subsidized, meaning the government pays interest on the loan while you’re a student. Or, they can be unsubsidized, where you owe interest even as a student. Typically, unsubsidized loans are for grad students or students who don’t have financial need.

Many adults who attended college racked up some debt for their education. The Center for LGBTQ Economic Advancement and Research found that LGBTQ+ adults had more education-related debt and borrowed more often than cishet adults.

There are pros and cons to student loans for everyone. But as with grants, LGBTQ+ students run into unique hurdles.

Scholarships may be the best-kept secret among ways to pay for school. Many organizations offer scholarships for LGBTQ+ students, nonbinary and transgender student scholarships, and funds for children of LGBTQ+ parents. Some are available to all LGBTQ+ students. Others focus on specific regions or majors.

I wish I knew more about lesser-known scholarships and grants that I could’ve applied for through community organizations, Flores said.

They recommend the Pride Foundation as a place for LGBTQ+ college students to scope out scholarships.

You can also search for scholarships on Campus Pride’s scholarship list.

As it stands, the financial aid system isn’t designed to include the diversity of this world.

When you grow up in a society that only has financial systems built for heterosexual couples and doesn’t even have options on the paperwork that describe your life, that definitely deters you from wanting to even have financial agency, Flores said.

However, LGBTQ+ students can take steps to secure their financial well-being.

You can make smart money moves now to spend less in college and save for the future.

Build an emergency fund as soon as you can, and aim to fund it with six months’ worth of your living expenses, Flores said. This will help you have a better buffer of money for when emergencies come up, transition expenses you didn’t see coming, healthcare expenses, and anything else you might need.

Money trauma runs deep in the LGBTQ+ community, Flores said. It is a complicated trauma when the society you grow up in only seeks to erase you.

Chances are, you’re not alone in experiencing financial stress. Talking about it with friends or at your campus LGBTQ+ center could be a place to start dismantling the stigma associated with LGBTQ+ money issues.

Saving and educating yourself about finances can pay off, literally and figuratively.

When you save and invest in your early years, like your college years, you set yourself up for success throughout the rest of your life. But not only that, you set up your community for success, too, Flores said. When younger LGBTQ+ folks see older folks take care of themselves like this, they will follow suit.

Here are some resources to help you find financial aid and set yourself up for financial success in college:

Point Foundation is the largest scholarship-granting organization for LGBTQ+ students. They also provide mentorship, leadership development, training, and more.

Campus Pride is a nonprofit organization working to create safer campus environments for LGBTQ+ college students. They offer a scholarship database to help you search for funding for your education.

Personal finance authors and experts David Auten and John Schneider aim to help the queer community become financially strong. They offer money tips for all areas of your life — not just education.

Part of being financially stable is having a steady stream of income. If you’re looking for an LGBTQ+-friendly employer, LGBTConnect is a job board that can help you with your search.

The Human Rights Campaign hosts another scholarship database on its website to help you search for funding. You can search by state, alphabetically, or by entering a keyword.