Common Types Of Financial Aid

Common Types Of Financial Aid



Common Types of​ Financial Aid
If you are planning to​ attend college or​ the parent of​ a​ child you hope will attend college, I'm sure you are concerned over how you are going to​ be able to​ afford the process .​
a​ college education in​ many cases is​ a​ significant investment .​
The good news is​ that there are many options for the average family when it​ comes to​ paying the high costs involved in​ higher education.
Types of​ Financial Assistance for Educational Expenses
Scholarships .​
You will find that scholarships come in​ many different shapes and sizes and have all kinds of​ strange requirements in​ order to​ qualify to​ receive them .​
Some are based on need while others are based on merit .​
You will also find that there are many community and faith based organizations that offer scholarships in​ addition to​ certain corporations that offer scholarships in​ a​ gesture of​ good will to​ employees and the children of​ their employees .​
These are an​ excellent source of​ educational funding, as​ they do not need to​ be repaid.
Federal Pell Grants .​
This is​ another financial aid source that doesn't require repayment .​
However, you must qualify based on need in​ order to​ receive this particular type of​ college assistance .​
You can only obtain a​ Pell grant if​ you are an​ undergraduate college student who has not yet earned a​ college degree .​
There is​ a​ formula that is​ used to​ determine the amount of​ award for which you are eligible .​
This depends greatly on your means as​ a​ family and how much you can realistically expect to​ contribute towards the cost of​ your education.
Loans .​
This should be used as​ a​ last resort when it​ comes to​ paying your college expenses, as​ this is​ money that must be repaid with interest .​
There are several types of​ loans that are available and you should consider carefully and weigh your options before taking out a​ loan .​
However, if​ this is​ the only method you have for covering the cost of​ your tuition it​ will be money well spent once you've managed to​ repay the debt .​
1) Student loans .​
There are three different types of​ student loans: subsidized, unsubsidized, and Perkins loans .​
You must qualify in​ order to​ receive an​ unsubsidized loan, which will put off your interest accumulation until after graduation or​ you cease to​ be enrolled the minimum number of​ hours .​
You do not however, need to​ qualify in​ order to​ receive an​ unsubsidized student loan, which will begin accruing interest immediately .​
If you happen to​ be in​ exceptional financial need you can apply through your university for a​ Perkins loans .​
These are low interest loans that must be repaid to​ the university.
2) Parent Loans .​
These are commonly referred to​ as​ PLUS loans (parent loan for undergraduate students) .​
These loans allow parents to​ borrow the money required to​ cover the costs of​ education that are not covered by other means of​ financial assistance .​
Repayment on these loans begins 60 days after the funds are transferred and can take up to​ 10 years.
3) Private loans .​
These loans are not guaranteed and are solely credit-based loans .​
They do not however, have the same limited scope that government loans have and in​ many cases can help bridge the gaps in​ actual educational expenses and the amount of​ money that you are allowed to​ borrow through traditional financial aid opportunities.
Before signing up for any particular sort of​ financial aid it​ is​ a​ good idea to​ see a​ financial aid counselor at​ the university you are planning to​ attend .​
They will have the best information about what steps you need to​ take in​ order to​ apply for financial aid at​ that specific universities and unique scholarship or​ grant opportunities that might be available to​ you through your state or​ the college .​
Higher education is​ a​ dream that is​ definitely worth having .​
Do not allow financial limitations to​ keep you from your goal if​ possible but enter into all financial arrangements with great caution and thought.




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