Types Of Financial Aid

For most students, financial aid is the key to acquiring a higher education. But many students and their parents do not take the time to understand what may seem, at first glance, an extremely complex procedure. ?Financial aid? refers to the entire gamut of programs that help students pay for higher education, ranging from the largest federal programs to the smallest locally sponsored scholarships.

Understanding exactly what kinds of financial aid you can get and where that money is coming from will put you in a much stronger position where it comes time to evaluate financial aid awards from different colleges and negotiate for more aid. Financial aid can be broken down into four broad categories: grants, loans, work-study programs, and scholarships.

Grants

Grants are awards that you do not have to repay. They are typically based on financial need. That is, you must prove that you need the grant money to pay for college in order to receive a grant. Grants typically come from public sources of financial aid, such as the federal government and your state's government.

Loans

Loans are aid that must be repaid, and they usually make up the largest part of the financial aid package. The federal government sponsors the largest student loan program, called the Stafford Loan program. These loans are a very good deal; they carry lower interest rates and more flexible repayment terms than private loans, and you don?t even have to start repaying them until six months after you get your degree. You may be eligible for federal student loans whether or not you have financial need, and our parents can even borrow under this program. If you are not eligible, you can take out a private loan, which usually must be cosigned by your parents. While it is a bit more expensive to borrow from private banks and other organizations than through the Stafford Loan Program, these loans still carry lower interest rates than consumer loans, such as the kind of loan you would get to buy a car.

Work-study Programs

Work-study programs enable you to earn your keep. In return for financial aid dollars, you must work a part-time job on-campus. You may get a job in the library or the cafeteria, or you may actually do work that is relevant to your field, such as working in a lab or assisting a professor. While the federal government sponsors the largest work-study program, your college decides what job to give you. Work-study awards typically make up the smallest part of the financial aid package.

Scholarships

Scholarships are gift aid, just like grants. But unlike grants, scholarships are usually awarded based on merit, not the financial need. You may receive scholarships because you get good grades, are an excellent athlete, perform service in your community, or have an artistic talent. You may also receive scholarships based on who you are. Scholarship money goes to minorities, women, members of religious groups, veterans and dependants of veterans, and the disabled. Scholarships typically come from private sources, such as corporations, foundations, nonprofit groups, churches, and the schools themselves. Usually you must apply for them separately from other forms of financial aid.

Author: Amelia Turner

Source: Ezinearticles.com

What Are Types Of Scholarships That Can Fund Your College Study?

There are many different kinds of scholarships programs available for college students to apply and win some free money to fund their college study. Each scholarship program has a different goal it wants to accomplish by awarding scholarship money. So, even you do not have the best grades, the higher scores in your school examinations or the most outstanding on the athletic field, you shouldn?t give up scholarship search. Chances are that you are uniquely qualified for scholarships that you never even considered. Here are the major types of scholarships that you can search for.

Career & Academic Interest Scholarships

The career & Academic Interest Scholarships normally sponsored by academic organizations, professional associations, industry groups, companies, and academic departments within a college. To be eligible, you often need to declare a major or otherwise demonstrate to the scholarship judges that you are serious about pursuing the field of study that the scholarship...Read Full Article >>>

Online Education - The Best Education Option In A Recession

The credit crunch and stock market crash will have an impact on households' income and their ability to pay for college. The tuition fee, room, books, travel and other college expenses are continuing to soar while the economy has worsened. With today's economy situation, it will be much more difficult to obtain a student loan. Parents are looking for alternative education options for their children and online education has came out to be the best education option that meets the tight education budget of the parents.

Prior to this economy crisis, students who choose to pursue their degree online are mainly enjoying the benefits of online education that give them flexibility study environment, but with economy downturn that leads to a recession, cost effectiveness of online degrees may become the key factor that divert many of pro campus-based parents and students to opt for online education.

Getting a degree through online education...Read Full Article >>>

Online Education Makes College Education More Affordable

The rising of education cost makes college education become more and more expensive; especially in today's bad economy situation where students are hardly get a loan to finance their study. It may stop some of students from pursuing a higher education due to unaffordable education cost. Thanks to the available of online education that makes college education more affordable and becomes a better option for students to earn a degree online.

According to college education & funding survey reports found, the results show that college tuition fees have increased by over 400 percent from year 1982 to 2007 while households' income rose below 150%. Situation may become worse following the bad economy that leads to a recession, which may put higher education out of the reach for most students. An alternative education option is needed and online education is the solution, it makes college education more affordable.

Online education has been around...Read Full Article >>>

Types Of Financial Aid

Related Articles