Students who are considering college and how they will pay for it for the first time may be overwhelmed by the financial aid options available. Grants and loans are the two main types of financial aid available in the majority of cases. For all intents and purposes, a grant is a loan that does not need to be repaid. This category may also include forgivable loans, in which the government or another institution will forgive the debt if certain conditions are met.
Scholarships and general student financial aid are two types of grants. Grants may be available for students for any reason in some cases. In the United States, one of these grants is known as the Pell Grant, and it is available to nearly any student pursuing their first undergraduate degree. Scholarships are frequently awarded based on academic achievement, as well as participation in sports or music. These are another type of financial assistance that does not require repayment.
Student loans must be repaid, but they may be structured so that repayment does not begin until after graduationk or until the student has completed a certain number of credit hours each semester. There is a six to nine month grace period after that begins. The payments will begin at that point. Interest may be charged from the beginning of the loan or only at the end of the grace period, depending on the type of loan.
The majority of financial aid, at least in the United States, is the result of the federal government’s desire to promote a well-educated workforce. This is not, however, the only type of financial assistance available. There is also state financial aid, as well as private-sector financial aid in the form of scholarships. For more information on any programs that may be available to you, contact your local financial aid adviser.
In-state tuition is a major form of aid that a state provides, though it is rarely referred to as such. For students who choose to attend a public college or university in their home state, this is a reduced rate compared to regular tuition rates. Other eligibility requirements, such as living in the state for a certain period of time, may apply.
Work study is a different type of financial aid that is available. In this scenario, the student donates some of his or her time to the university or college in exchange for a discount on a portion of the college’s tuition. This can drastically reduce the amount owed when you graduate from college after four years.