WHAT ARE THE DIFFERENT TYPES OF FINANCIAL AID AVAILABLE?

WHAT ARE THE DIFFERENT TYPES OF FINANCIAL AID AVAILABLE?

College is a costly venture that will help to mold the rest of your life. When it comes time to head to a center for higher education, you may be wondering how you are going to cover the cost. Thankfully, there are numerous types of financial aid packages that can be utilized to help get you through school.

Grants

A grant is the most coveted form of financial aid. Because they don’t have to be repaid, most try to get as many grants as possible before applying for loans. The Pell Grant is the most popular and this one is given by the Federal Government. Students who have not earned a Bachelor’s Degree are eligible for up to $5,775, and they can get this amount for a consecutive 12 months.

If a student wants to be a teacher, the Teacher Education Assistance for College and Higher Education grant is fabulous. Low income families can qualify pretty easy with an approved program enrollment. When there is an exceptional need, the Federal Supplemental Educational Opportunity Grants can help. These are just a few of the many options out there. It is best to first try to get a grant, as they will greatly reduce the financial burden of college.

Loans

A college loan will have to be paid back, but the terms are pretty generous. The most common type of college loan is by the Federal Government and is called Federal Aid. These loans fall under many categories and may be called the Federal Perkins Loan Program, William D. Ford Federal Direct Loan Program, or Sally Mae. These loans are low-interest and allow grace periods for when students are not in school. A student will have to pay them back within six months of graduation. They do allow some forbearance for those who haven’t found suitable employment.

Another type of loan that can be obtained is a private loan. These loans are similar to those from the government, but they go on the credit score. A federal loan doesn’t require a good credit history or an income to receive these funds. Getting a student loan privately may require a co-signer, or can fall under the parent loan program. They usually have a higher interest rate and don’t have the same perks that the federal loans do.

Work Study Programs

The work study program is a great way for a college student to get some on the job training, yet still attend classes. Special employers hire college students with the thought of training and supporting their educational journey. These jobs are mostly part time and give students money they need to pay for their education and expenses.

Scholarships

There is numerous scholarship programs that are awarded based on many determining factors. Every state has some sort of scholarships programs that they provide. They only have a limited amount and they are awarded based on the qualifications. Many private employers and community organizations also offer scholarship programs. While these amounts are usually not substantial, it is important to get as many scholarships as a person can to offset the costs of education. Some of these scholarships are based on academics, need, and may require an essay or other documentation.

When it comes to funding college, getting various types of assistance can help eliminate the financial burden. Don’t count on federal loans solely, seek out grants and scholarships too. Depending on the college you select, the federal loans may or may not be enough to cover the costs. If you want to live on campus the costs will be significantly higher. The more types of assistance that you have, the better off you will be financially.

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