The process of getting to college is an enjoyable as well as challenging one. As students and their families aspire to this adventure, one of the most important concerns is financing of the adventure ‘college education’. Given that putting children through college increases every year, knowing what are their choices in regards to financial aid is crucial. Readers of this blog will be able to get more detailed information for scholarships, grants, loans and WORK STUDY program.
Types of Financial Aid
1. Scholarships
Scholarships are part of the financial assistance that does not require pay back after the candidate has been awarded the scholarship. It is most often granted with reference to various achievements such as academic performance, prowess in games and other activities. Scholarships can also be need-based, service-based, leadership-based or any other criteria that a given scholarship offering organization may wish to attach to the scholarship.
- Merit-Based Scholarships: These are given to bright scholars who have excelled academically or delegated performers on the field. Scholarships awarded on merit can be provided by colleges, private bodies or state governments. For instance, those students selected to receive scholarships under the National Merit Scholarship Program do so based on their score the PSAT/NMSQT Test.
- Need-Based Scholarships: These are provided to a student depending on the student’s economical background. Such organizations as Gates Millennium Scholars Program offer good scholarships to those who come from financially poor families.
- Specialty Scholarships: These are restricted to categories including the ethnically diverse, the female gender, or students in specific programs of study. Some of these include the Hispanic Scholarship Fund and the Women In Stem Scholarships.
- Local Scholarships: Most of the community based organizations, local firms, and other civic bodies provide scholarships to students who are residents of the region These. These scholarships may be less competitive than national scholarships’ making them a good source.
2. Grants
Grants are yet another type of financial aid that is similar to scholarships in that the money does not have to be repaid. Grants, generally, are financed and directed by federal entities, however, they are given out in accordance to the financial requirements of the recipient as well as being given out in the form of merit scholarships as well. The most common types of grants include:The most common types of grants include:
- Federal Pell Grants: These go to undergraduate students who are in most dire need of money for their tuition and other expenses. The Pell Grant is a federal program where the amount depends on the expected family contribution or EFC as well as the student status; full-time, part-time.
- Federal Supplemental Educational Opportunity Grants (FSEOG): These are grants meant for students who have shown came to school with high financial needs. These are also organized according to individual colleges and funding is slender, it would therefore be wise to apply early.
- State Grants: Some of the grants available to college students include state grants; most states provide grants to their residents attending college within that state. These grants are mostly for need but may also be based on merit or any other factor as may be deemed appropriate.
- Institutional Grants: Many Colleges and Universities have grant programs within their institution through a specific endowment or an available funding. These grants may be funded on the basis of individual’s needs, on the basis of the individual’s merit or on the basis of both.
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3. Student Loans
As much as one would wish to avoid loans they are not only expensive but the other sources of funds such as scholarships and grants are still insufficient to fully fund college. There are two main types of student loans: In these there are the federal loans and the private loans.
- Federal Student Loans: These loans are available from the federal government and usually come at a lower interest rate than the private loans while usually giving lenient repayment terms. The main types of federal student loans include
- Direct Subsidized Loans: These are need based loans that enable the government to pay the interest charges on the loans where the student is in school, during grace period and during the deferment periods.
- Direct Unsubsidized Loans: These loans are need blind, interest capitalizes while the student is in college, and they include;
- Direct PLUS Loans: These are loans for graduate students to fund their education as well as parents of dependent undergraduate student. It costs more, it has higher interest rates and also involves the subject to a credit check.
- Federal Perkins Loans: Nevertheless, some students may still have outstanding Perkins Loans even though this program was scraped in 2017. These were need-based loans, that could be acquired at a small, interest rate and were disbursed by each college.
- Private Student Loans: Such loans are available from banks, credit unions and other non-traditional providers of such funds. These almost always come with higher interest rates and far fewer flexible repayment terms than federal loans. What really need to be avoided is that private loans should be sought out in a situation where all forms of federal loan have been exhausted.
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4. Work-Study Programs
The Federal Work-Study Program offer part-time employment for undergraduate and graduate students with the need for funds to meet the cost of attending an institution of higher education. Most of the work-study jobs are those that are on the students’ field of specialization or those that entail offering service to the community. These jobs can be on campus or off campus they offer college students work experience to help meet college expenses.
Financial aid applications: a step by step guide
The sources of financial aid starts up with the FAFSA and this can be done on line in the FAFSA. Government; Simple, it should be filled and submitted as early as October of the year proceeding the year you wish to attend college since some of the aid is provided depending on the early bird basis. Still, one can mention other options such as the CSS Profile, more detailed financial aid form that many private organizations prefer.
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Conclusion
Searching for the money to pay for college can be quite confusing, but when a student knows what he or she is eligible for college becomes more affordable. When it comes to finding the money for college, it may seem like there is no end to resource for financing your college education. Starting early, being organized while searching for all the possible ways to finance your college dreams will let you create the financial plan. I want you to always keep in mind the fact that getting an education is one of the wises steps toward a successful future.
