Get To Know The Types Of Financial Aid

The cost of attending college can be expensive.  Most students seek for financial aid to assist in paying added educational expenses such as tuition fees, dormitory, school supplies, and books among others at any college, private school, or university.

The need-based aid and non-need based aid are two types of financial aid for students.

When students don’t have adequate financial resources to pay for your education after high school, they fit under the category of financial need.  It is the main requirement to be eligible to receive need-based aid apart from other criteria.  Regardless if you or your family have enough funds to pay for college, the total price of sending you to college is commonly verified based on the financial data about you and your parents.  Simply put, you must give the impression that you can’t afford to shoulder all your college expenses.

The non-need based aid is considered to be a merit-based aid.  It is commonly granted to students in recognition of their academic abilities, special talents, and skills. The non-need based aid has qualifications that are competitive thus selects recipients on their superiority in certain criteria used for selection.  The merit aid does not select students based on their financial need.  It is based on criteria such as community service, ethnicity, athletic talents, leadership abilities, field of study, religious background, or field of study.

Both the non-need based and need-based assistance has three types of financial aid namely grants, loans, and work study programs.

1. Grants

Grants are considered as gift of money wherein students are not required to pay back.  The government offers grants to students who belong to the lower brackets of the income group.  A minimum GPA is usually required as one of the qualification of the grant.  The GPA requirement is based on how much the student or his family has.  A form of grant is scholarships or an award given for excellent academic performance, talent, and special skills.

2. Loans

Loans are a kind of financial aid that must be paid back.  Unlike other types of loans, the student loans for need-based borrowers can be repaid after graduation.  The loan has an added interest but lower than other loans. It is because the government pays the interest in behalf of borrowers while you are studying.

Non-need based loan are not required to be paid back while borrowers are enrolled in school.  Its difference from the need-based student loan is that the borrowers while in college must pay the interest.

3. Work Study Programs

The work-study program is the money that students earn from employment through the office of Financial Aid.  Most schools offer assistance to students to find jobs or to actively recruit them in jobs.  The employment can be on campus or off campus.  Students are given jobs related to their program of study or unrelated to their enrolled academic program.  The work-study program has benefits such as teaches students how to organize time, teaches them how to be responsible, and present them with a good source of recommendations for job searches after graduation.