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Types of Financial Aid

There may be various types of monetary aids students may apply for if qualified; however, it is important to research available options. Let’s take a look at the various options that may be available to you if you qualify!

Federal Student Loans

Students whose parents have a good income and credit may apply for a dependent federal government student loan if they qualify. Although the loan will be technically granted in the student’s name, the parent is typically responsible for paying back any monies owed. In most cases the students do not need to start paying back until ten months after their graduation. Some may also apply for postponements, which defer payment until his/her income is substantial enough to afford monthly payments toward their loan debt.

Grants

Grants, unlike student loans, need not be repaid. Grants are typically granted to those in lower income brackets for those who qualify. There may be various types of federal and state supported grants for different ethnic backgrounds and genders for those who qualify. There may also be grants available for specific career fields such as various medical and scientific professions for those who qualify.

Federal Work Study Programs

Many colleges may have a unique Federal Work Study Program (FWS) in which a qualified student is placed on campus for various work which is compensated via tuition rather than hourly pay or salary. Generally these are offered to those students who have a difficult time obtaining loans or grants.

Scholarships

There may be numerous scholarships available to students today if they qualify. The most popular and well-known scholarships are based on merit and generally originate from a specific college or university. Other scholarship opportunities include special talents, interest, student qualities as defined by a specific school, participation in sports, and academic achievement.

Private Student Loans

Students who cannot qualify for available grants and scholarships could look at the potential option of taking out private student loans if they are qualified. These loans function much like a loan for a car or home; however, it is important to note that these cannot be written off in a bankruptcy as other loans can. It is possible to defer payments for a specific amount of time. Private student loans may be acquired for those who qualify at many banks and other financial institutions.