You've made the wise decision in choosing to further your education. But how far can you go on your savings or, if you're among the lucky ones, on what your parents may have been able to put away for your higher education?
4 Types of Student Financial Aid
Even with savings or other means, the costs of higher education keep on rising. That's why the first education you need is an education on all the various avenues and sources available to you. But we want to make it easy on you. That's our mission here! And that's why we've put together this guide to financial aid and other funding resources for you:
- Scholarships & grants - Scholarships for students freshman through senior and fellowships for those in graduate school are types of aid that help for tuition and fees. Dissimilar to student loans, scholarships and fellowships don't require repayment. There are multiplied thousands of scholarships and fellowships from many thousand of benefactors given out at any given time. Typically, fellowships and scholarships go to students who qualify under special circumstances, due to athletic, academic, or artistic achievement. They are sometimes given out to those who intend to attend a school with an eye toward some field of study. They might also be a member of a minority group, be from a particular place, or not have the financial wherewithal to pay for school. There are many scholarship search sites online.
- Student loans - Unlike scholarships which do not have to be repaid, a loan for education must be repaid, and interest will be charged for the loan. Federal law sets the maximum interest rates and fees that can be charged by a lender may charge for loans guaranteed by the government. However, a lender may charge lower fees. Many lenders offer a variety of student loan discounts to attract borrowers. Education loans come in three major categories:
Government-sponsored student loans, like Stafford and Perkins loans
Private student loans
- Scholarships, grants, work-study and other and other means of funding tuition that do not have to be repaid generally don't foot the whole bill of a college education. Lots of students find that they have to look for other sources, including private and government loans. The loan programs of the federal government offer interest rates that are lower and their plans are more flexible than most consumer loans. That makes them a more attractive way to pay for an education. Interest on student loans is also tax deductible to the maximum of $2,500 whether you itemize deductions on your income tax return or don't.
- Savings - It is less expensive to save for college than to borrow. For the average college student's two-thirds of their way is paid by a combination of savings, current income, and loans. The government has established specially protected college savings plans. Among them are: Section 529 college savings plans, UGMA/UTMA Custodial Accounts, Section 2503(c) Minor's Trust, and US Treasury Savings Bonds.
- Military student benefits - Aid for military students, like the GI Bill, is the primary reason many enlist in the military. However, this program only covers only about 60% of the average college education. Available to all branches of the US Armed Forces, including the Reserves and the National Guard. Benefits are 36 months of education and training opportunities. These benefits are even greater for the dependents of veterans either killed or permanently disabled: up to 45 months. Sons or daughters must be between the ages of 18 and 26. Spouses of veterans area also eligible for 10 years after being termed eligible by the military.
There are many people that think that based on certain things they can't get financial aid. Find out more about what kinds of people can get financial aid with the information we have provided.