Types of Financial Aid and College Funding Options:
There are various types of financial aid and college funding opportunities that students and their families can consider when paying for college. In this article, we’re going to explain all types of aid, why you should get it and how to earn it if need be. These include scholarships, grants, loans, and work-study programs.
All of these can cover some or all of your expenses and should be taken into consideration when looking at your funding possibilities. These forms of funding may be received from the U.S. Department of Education or from your college or university.
- Scholarships: Scholarships are awards that are offered based on diverse criteria, such as academic merit, financial need, extracurricular activities, or other accomplishments. There are several sources of scholarships, including the government, colleges, universities, private organizations, and businesses. Scholarships do not have to be repaid.
- Grants: Grants are another form of financial aid that does not have to be repaid. They are generally based on financial need, and they may be granted by the government, colleges, universities, or private organizations.
- Loans: You borrow money and must repay it with interest if you take out a loan. As part of your school’s financial aid offer, you may be offered loans. You borrow money for college or career school when you receive a student loan. In addition to repaying the loan, you must also pay interest. In order to successfully repay your loan, you need to understand your repayment options. An interest-bearing loan is a type of financial aid that must be repaid. Federal student loans are provided by the government, and private student loans are provided by banks, credit unions, and other lenders.
- Work-study programs: Work-study schedules are a type of financial aid that allows students to earn money to help pay for their education by working part-time while they are enrolled in school.A student’s field of study or career interests is often reflected in their work-study job. Your total work-study award depends on;
- when you apply,
- your level of financial need, and
- your school’s funding level.
In addition to these financial aid options, students and their families can also consider saving for college through education savings plans, such as 529 plans, or using personal savings or income to pay for college costs.