Financial aid guide for students and parents

Choosing a college or a university for higher education may depend on a number of diverse factors but in the end it may get stuck up on the question of dollars and cents. But many times, prospect of college education and a successful career faces a setback because of the lack of funds. Though there are many types of financial aids available, either people do not know about them or are confused between them. One must know the different types of aids, their criteria and benefits to decide one that suits his financial condition and personal situation.

Most commonly available types of financial aids include –

• Grants – These are financial aids that are given on basis of financial need or to support some specific project. They are federally funded and for many grants there are criteria of age, marital status, dependency etc. It is important to fill the FAFSA application to be eligible for a grant.

• Scholarships – Scholarships are usually awarded on the basis of academic achievements and merit. The criteria and amount varies, from some hundred dollars to full-fledged fees, with the sponsor. Sometimes, they are reserved for students with specific academic, artistic or athletic qualifications or belonging to an underrepresented groups or living in a certain area or in a particular field of study. Scholarships are sponsored by federal government, corporate, college alumni and even private sponsors. One can also find unusual scholarships like scholarship for left-handed students.

• Work-Study Programs – These allow students enrolled in a school to work and earn for their education. They may work in a field related to their study or in other miscellaneous job and sometimes involves off-campus jobs also. They provide the students with a specific number of paid work hours over academic year. It gives them an opportunity to gain work experience, form contacts and a foundation for a successful career.

• Loans – Loans are a form of financial assistance that needs to be repaid along with an interest so it is usually the last option a student seeks. Loans can be federal loans which are at a lower rate of interest or loans from private lenders which are at a higher rate of interest. Federal loans are further divided into subsidized and unsubsidized loans. Different types of loans are available to suit the varying requirements of students and parents.

• Others Programs – Other forms of financial aid includes military enlistment, support from employer, college controlled aid, aid based on student profile, federal and state government aid, savings etc.

Whether you are a student planning to go to college or a parent planning for your child’s education, it is important to explore the various forms of financial aid, their benefits and criteria. Instead of following the herd blindly, you must be able to analyze which forms of aid suit your situation and are applicable for you.

Financial aid helps a person in meeting the college expense and if the decision regarding types of financial aid is not taken carefully, it may itself become an expense instead of a saving.