Want to go to a college or university? Well, face the fact. Education is getting very expensive and coupled with the increasing standard of living over the last decade, it seems like a tall order.
Everyone needs an education and everyone deserves an education however, not everyone can afford one. Thank god there is something called financial aid. There are many financial aid programs available nowadays. Even a simple search on Google can give you so many results.
So what is financial aid program? A financial aid program is a method to financing. There are many types of financial aid programs available. This article will educate you more about it. So, read on.
There are various financial aid programs available. The most common ones are scholarships, grants and loans.
A scholarship is a type of “gift aid” that rewards a student for grades, athletics, a unique skill, a special talent, financial needs or even a specific career interest. Scholarships can come from many different sources, such as colleges, the government, or different public or private organizations (such as a workplace, church or not-for-profit group.) When looking for scholarships, don’t stop with just one search; new scholarships are created all the time.
A grant is a type of “gift aid” that does not need to be paid back. The amount awarded is usually based on financial need and is generally provided by the government or the college a student plans to attend.
A loan is a type of “self-help” aid that lets an individual borrow money from the government, banks or other lending institutions. Since it’s “self-help” aid, it must be paid back with added interest. Loans can be awarded based on financial need or not on financial need.
There are student loans (which are generally long-term and have low interest), parent loans (for parents to help pay for college), alternative loans (from banks and lending institutions) and consolidation loans (which combine all eligible student loans for one easy payment with possible lower interest).
One note of advice; borrow conservatively, accepting only the amount of money needed. Loans are a good avenue but remember that with a loan, you have to pay the interest. The more you borrow, the more you have to pay.
One of the easy way pay your loans is to look at financial aid programs. Find a financial aid program that suits your need. One reminder: only borrow what you need.