Types of Financial Aid

Types of Financial Aid

Currently, if you want to attend a college or a trade school, but don't have enough resources, you can get financial aid. Financial aid is monetary help that many institutions offer to students, for example Federal government. The most important types of financial aid are the following:
  • Scholarships

    A scholarship means financial support, it is granted for studying or researching, but if you want to get one, you need to meet certain requirements. Scholarships are awarded by both public and private companies, civic associations and individuals. An advantage is that you don't need to pay it back, but it has some requirements. There are two types of scholarships: School scholarships and Private scholarships.

  • Loans

    Unlike a scholarship, if you want a loan, you will have to earn it. In other words, it is when one borrows money to study, and one must pay the loan back.

    There are two types of loans: The first type is a Government loan; the government offers several loans to students who want to go to school. The loan can include enough money to pay housing, tuition and other expenses. You must know that government agencies will determine what type of loan they can give you.

    The second type of loan is a Private Loan, many students cannot get a government loan, but they can get a private loan from individual banks. These are also known as Alternative Loans. Private loans usually have less negotiable terms and a higher interest rate.

  • Grants

    This type of financial aid is a gift that is offered to students who are in the lower brackets of income level, so you don't have to repay it. If you want to get a grant, you must have the greatest financial need and a minimum income. However, the GPA (average) depends on how much money you and your family have.

  • Teach

    If you want to teach in low-income schools, you will get this grant.