How to Pay for a College Education
- Author Jeremy Smith
- Published April 15, 2011
- Word count 546
There are many different ways to pay for a college education. Each person’s situation is different. Some students may be able to use just one source of funding, while others rely on a combination of resources. These options might include scholarships, loans, trust funds, savings accounts and the generosity of others. The more degrees a student earns, the more educational funding they will need. The more money for college they need, the more creative they will need to become if their resources dwindle.
Scholarships
Students that excel in academics and athletics are frequently given scholarships by a college. A scholarship means that the student’s education – or at least part of it – is paid for by special funding from the school or some other source. The student earns the award based on merit and does not have to repay the money. Scholarships may be offered for academic excellence, athletic or musical talent, ethnic background or social factors. Many organizations and associations offer scholarship money for students that meet certain requirements. For example, they could be essay contest winners, good citizens or science fair participants. Scholarships may cover all expenses or just a portion.
Private Student Loans
When scholarships, grants and government loans do not cover expenses, many students turn to private lenders to supplement their educational funding. The interest rates are usually low and the terms for private student loans are reasonable. Some types allow the borrower to start paying back the school loan before completing school. Another option is to wait until the person stops going to school, either by graduating or simply ceasing their higher education.
Federal Government
The US federal government offers loans to students wishing to get an education beyond high school. The money is borrowed and repaid through the US Department of Education (DOE). There are different types of government loan packages available. Some students qualify for interest-free terms, while others have low-interest terms. The amount of funding the student receives is determined by the school they choose. Factors include the student’s age, family income, military status and credit history.
Grants
Grants are similar to scholarships, but they are usually given based on financial need, rather than merit. Grants are given through many different sources, including the federal or state government, private corporations, organizations and associations.
Trust Funds
Trust funds are usually set up by a student’s parents or grandparents to pay for college. The money is put into a special account that accrues interest as the child is growing up. When they are old enough, students are allowed to access the money for college. Some trust funds have special requirements that must be followed in order for the money to be released.
Personal Funding
Some students pay for school by working during the summer and/or school year and saving up money; others rely on their parents to pay for it. For some, the number of classes they can take each semester is dictated by how much money is available for tuition.
In conclusion, there are a number of different ways to pay for college. Different methods can be used or just one or two. Each person’s financial and educational situation affects the amount of money needed and whether or not it must be paid back.
This freelance journalist writes about scholarship searches and tips on saving for college. They also have a Sallie Mae student loan.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Does AutoNation work with bad credit?
- Guaranteed Auto Financing
- Elevate Your Business with Top-Quality Printing Equipment from Finance@work Pty Ltd
- BNPL vs Traditional Lending: Which Is the Better Option for Today’s Consumers?
- Can Getting a Loan Affect my Personal Credit Score?
- Personalized Loans 5 Things you Should Consider Before Applying
- Best Credit Card for Cash Back on Gas: Fuel Your Savings
- Mwananchi Credit Highlights The importance of Teaching Financial Literacy In Schools
- Porchlio's Rent Affordability Calculator: Your Key to Smart Renting
- What is SMB Funding?
- Cash USA | Quick & Easy Loans
- How Can a Private Loan Help Your Cash Flow Situation
- Business Line of Credit: A Lifeline of Your Financial Needs!
- Unsecured Small Business Loans in Australia
- Working Capital Loans: Everything you Need to Know
- Small Business Cash Advance Loans - Fast and Easy
- Things Not to Do When Building Business Credit
- Why Small Business Loans Do not Get Approved
- How to File Great West Life Benefit insurance Claim
- My encounter with the heartless corporate America @ChaseBank
- Are low doc home loans still available in Australia?
- Think Due Diligence Before Acknowledging That Loan Offer
- Tie Up Your Financial Loose Ends! The Importance of Managing High-Interest Loans
- Understanding cash flow vs. asset-based business lending
- Debt Consolidation Loan or Debt Counselling in South Africa
- Credit cards with bad credit wired to a prepaid debit card
- Insurance Financial Producers Articles - A Superstar Success Story Cannot Teach Me Anything
- Three Quick Tips From the Canada Revenue Agency on Tax Filing
- How Crypto Loans Work
- 4 Reasons why it is Beneficial to make a Down Payment for your Car