Receiving a financial aid can make a big difference in the life of a student and is capable of unveiling more talent that could benefit the country and the world in general. Usually, this financial aid comes in various forms and from different sources. A sound knowledge of the different types of financial aids available can help a student take maximum benefits from these available funds.
Financial aid is available in the forms of grants and scholarships, student loans, parent loans and work-study. The federal government provides the major portion of this financial aid.
Grants come under a type of financial aid that one receives from the federal government, government or school of your state while schools and private corporations will award scholarships. Federal grants like Pell grant can range from $1 to $5,500 on the basis of your financial contribution.
The amount that is borrowed from the federal government by the students which goes towards the payment of fees comes under student loans. These work in the same way as any other loan available except that the government makes sure that the loans given to the students have the most favorable conditions. One of these favorable conditions includes the direct subsidized loan which does not count in the interest in your studying years.
There is also an option for the student’s parents to borrow a certain amount from the federal government to pay for their child’s college education. One of the most known parent loans is the federal plus loan.
Finally, there is work-study which gives you an opportunity to either work on campus or in the local community and the wages for the work would be partially paid by the federal government and the rest by the employer. This kind of work is capable of covering some of your educational expenses.
Financial aid can also be received from the government of your state, your school, your college or in the form of scholarships from various private organizations.