For the third installment of this series, I’m going to be discussing all the different types of financial aid that are available to future students pursuing higher education. Securing financing or aid can be the most challenging aspect of attending a college or university, as there are many moving parts and options available. More flexibility in payment method allows for more students to attend, even people who may have never believed it possible. Here are all the different types of financial aid available to prospective students.
Scholarships are known as one of the most sought out types of financial aid because it’s known as free aid. Scholarships are provided to students through different programs or organizations for a monetary amount that does not need to be paid back. These are usually rewarded to students with high academic achievement or athletic abilities, and can often be accompanied by a GPA requirement in order to maintain the scholarship.
Another type of free aid, grants are one of the major forms of financial aid at the federal level. Grants are typically paid out through the government to students with a high need for financial aid, excellent GPA and test scores, or could even be based on nationality or the field of study being entered.
This is the most common form of financial aid most students in the country seek out because it’s the most widely available option for most people. Student loans are available through the federal government or can be obtained privately through banks. These are typically large sum payouts that requirement repayment, usually once an individual has finished their schooling. Federal student aid is awarded with low-interest rates subsidized by the government. Amounts awarded usually depend on household income, credit history, and tuition cost.
While less popular than the first three student aid options, many students currently enrolled in secondary education schools participate in a work-study program. These programs are offered by most colleges and universities and allow students to earn money working on campus while being enrolled full time. While this does not ultimately generate enough income to cover the cost of tuition, it allows students to get a head start and make college life more affordable.