Those who are looking at college careers might get overwhelmed with the kind of financial payments that need to be made in pursuing certain career courses. In general all private institutions have high fee structures that might not be possible for a student to cover or for their parents. Hence financial aid is made available in two forms, loans and grants. A grant is a form of financial support where the amount does not have to be repaid. There are forgivable loans as well where the repayment might be revoked by a government body in case certain conditions are met. In other cases educational loans are provided at low interest rates for students who have a certain financial status.
Types of grants
Grants can be of two broad categories, financial aid for students or scholarships. Grants are often made available for students who are pursuing a certain level of studies like undergraduate levels. On the other hand, scholarships are offered on performance parameters. These could be in academics, music or sports or in vocational courses like certificate iii in plumbing. These kinds of financial aids are provided without the requirement for a payback.
The other category of financial assistance for students is student loans. These need to be paid back, but the payback differs from other kinds of loans. In many cases the repayment does not come up till one has completed their graduation or in case the credit hours fall below a certain level. The loans often offer a grace period, even for vocational courses like certificate iii in plumbing. Interest also varies and might be charged at the beginning or towards the end of the repayment cycle.
In many countries the government provides state aid for educational purposes. These schemes are offered in order to encourage higher education among the working masses. Some private organizations also offer scholarship schemes which encourage students of merit to join these institutions and courses. In case you are interested in pursuing a certain course in a college or university, you could look up the financial aid programs that are offered and the parameters set for them.
Points to consider
Those who are looking for financial aid for pursuing college or post graduation programs need to understand the loan obligations they take on. Some might plan to work part time while studying which will help them cover their expenses as well as save towards paying back loans. In case of grants there might be educational parameters that need to be fulfilled and in case one cannot perform as per set standards, grants might be revoked. Hence, these points need to be remembered when one is taking up financial assistance.