4 Financial aid options for students with low income.
Financial aid is a form of financial assistance granted to help students cover the cost of their education.
Financial aid can come from different sources, which includes federal and state governments, educational institutions, and private organizations.
Financial aid is a sort of lifeline for many students, hereby providing the necessary resources to pursue their career dreams.
The primary focus of financial aid is to level the gap between a student’s Expected Family Contribution and the total cost of a student’s education.
Apart from scholarships, there are other forms of financial aids that comes with their own set of requirements and benefits.
TYPES OF FINANCIAL AID FOR STUDENTS WITH LOW INCOME.
Financial aid can be categorized into different types which will be illustrated further below. Before we proceed, you might want to check out this article on How to use volunteer experience to boost scholarship applications – 7 Easy steps
1. SCHOLARSHIP:
Scholarships are a form of financial aid that is awarded to students who have demonstrated some level of academic excellence, or have unique talents. These scholarships do not require repayment, which makes them a highly sought-after form of financial aid.
Scholarships can come from various sources, which includes: colleges, universities, private organizations, and government agencies.
a. MERIT BASED SCHOLARSHIP.
Merit based scholarship is a type of scholarship that is solely a form of financial assistance that is rendered based on a student’s skill or academic accomplishments. These scholarships are awarded to beneficiaries based on their academic achievement or exceptional talent in a particular field such as sports, music, or art.
To be eligible for a merit-based scholarship, such beneficiary must have an excellent academic record or demonstrate outstanding skills in their chosen field. These can include athletic or artistic abilities, high test scores, or excellent grades.
These type of scholarship only attracts top talent to institutions hereby rewarding students for their hard work and skills.
If per adventure such students receive this merit reward, they may be required to maintain their school work above a certain grade point average, or GPA.
b. NEED BASED SCHOLARSHIP:
Need based scholarship is granted to individuals with low financial income. Depending on the level of income the person and his/her family generates, they might actually qualify for it. Need-based scholarships are awarded to students who have demonstrated in way or the other that they truly need this financial need.
This need based scholarship considers truly the student’s family income, assets, and expenses to determine their eligibility. Students from low-income families or those facing financial hardships are mostly granted this scholarship.
Need-based scholarships are determined by the students financial situation rather than focusing only on their academic excellence. This mostly implies that the student’s family has a general household income that does not exceed a certain amount. These scholarships are mostly referred to as student grants and are awarded by public institutions such as government, also by charitable organizations.
c. SPECIAL/UNIQUE SCHOLARSHIP:
These type of Scholarships are available for students with special and unique backgrounds or interests. These scholarships are meant for students with unique backgrounds or interests, such as scholarships for children of military personnels, students with disabilities, or students pursuing a specific degree or career path.
d. ATHLETIC SCHOLARSHIP:
Athletic scholarships are granted to student athletes who excel in sports and can contribute to an institutions athletic team. Sports scholarships are an excellent way of seeking for financial aid for higher studies as there are fewer applicants for these scholarships as compared to other scholarships.
For those who have much passion for sports, they might use it to their advantage even after school. Athletic scholarships are based on student’s participation in a variety of sports ranging from football to hockey.
Some scholarships offer full rides covering the entire cost of tuition, housing, and books. Athletic scholarships helps the institutions sports team to attract and recruit talent to play for the school team.
However, just Like other scholarships, this type of scholarship also needs some certain requirements that a student must meet up to including some certain qualifications which is in addition to their athletic abilities such as: Minimum CGPA, leadership skills, and extracurricular activities. These scholarships may cover part or all of the student’s tuition fees depending on their athletic abilities and performance.
2. GRANTS:
Grants is a form of financial aid that is granted mainly to students and does not require any form of repayment.
Grants are typically need-based and can come from various sources. They are mostly awarded based on a students financial need, academic performance, or other circumstances.
TYPES OF GRANTS.
a. INSTITUTIONAL GRANTS:
Institutional grants a form of financial aid granted by institutions, like colleges and universities to students based on financial need, academic merit, or a combination of both. Many institutions offer scholarship and grants to international students. The amount and type of financial aid differs by institution.
These grants can significantly reduce the cost of payment and fees hereby making college more affordable for many students.
b. FEDERAL GRANTS:
Federal grants are the form of financial aid awarded to students by the federal government. These grants are mostly based on financial need.
c. STATE GRANTS:
States award state grants to their residents who demonstrate financial need. The eligibility criteria and amount awarded can vary from state to state.
Also, these grants can provide significant and financial assistance to students attending college in their home state.
3. LOANS:
Loans are borrowed funds that require repayment with interest. They can be obtained from government agencies, banks, or private lenders
Either as a federal or private institution, loans are a popular option for paying for school.
Loans are also a form of financial aid granted to students which must be repaid. These loans are mostly student loans.
Students can receive these loans from the federal government or private lenders. While loans can provide significant financial assistance, students need to understand the terms and conditions of their loans before accepting to take them.
FORMS OF STUDENT FINANCIAL LOANS.
a. PRIVATE STUDENT LOANS:
Private student loans are the loans offered to students by private lenders like banks, credit unions, and other loan companies.
Private loans can cover the gap between the cost of attendance and the aid received from other sources.
These loans mostly have higher interest rates than federal loans. But, they can still be a good option for students who need additional funding beyond what they can receive from the federal loan aid.
b. FEDERAL STUDENT LOANS:
The federal government offers federal student loans, which mostly have lower interest rates and more flexible repayment options than the private loans.
These loans can be subsidized or unsubsidized. When the loans are subsidized, it means that the government pays the interest or a part of it while the beneficiary is still in school. Federal student loans also offer various repayment plans, which makes them a popular choice for many students.
4. WORK-STUDY PROGRAMS:
Work-study programs is a form of financial aid for students by offering part-time employment opportunities for students to finance their education. These programs gives students the opportunity to earn money while gaining work experience.
Work-study programs provide part-time jobs for students with financial needs.
It is a federal student-aid program designed to help students earn money for school. Not only does work-study programs provide financial aids to students, but they also offer students valuable work experience and the opportunity to develop professional skills. The amount a student earns cannot exceed their total work-study reward.
Work study jobs are flexible as it gives students the opportunity to balance their work commitments with their academic responsibilities.
