Funding your education might be a tough thing to do, but there are many ways to get your study funded completely as stated by Bahaa Abdul Hussein . Among the two usual ways for a student to finance themselves, student loans and scholarships are the most common.
Let us look at them in detail and see which one is the right fit for you –
1. Student Loans
Types of student loans
Federal Student Loans: These loans are offered by the government and hence have relatively lower interest rates and more lenient repayment options than the ones provided by private lenders.
Private Student Loans: The loans are provided by banks, credit unions, and other private lenders. They are almost always given higher interest rates and less flexible repayment options as compared to federal loans.
How do I apply for a student loan?
Fill out the FAFSA. The FAFSA is the form that is used to determine if you can get federal student loans and other financial aid programs.
Research Private Loan Options: Have you exhausted all the federal loan options? In that case, you will have to conduct research on the private loan options and apply directly to the lender.
2. Scholarships
Types of scholarships
Merit-Based Scholarships: The person who gets selected is chosen on the basis of his or her academic, athletic, or artistic achievements.
Need-Based Scholarships: The acceptance letter is acquired in accordance with the financial situation.
Specific Scholarships: The awards are awarded according to the set rules, for example, the field of study, the origin, or the membership in a certain group or organization.
How do I apply for scholarships?
Research Scholarships: Search for the scholarships that are offered by colleges, universities, private organizations, and foundations.
Submit Applications: Read the application guidelines thoroughly and provide all the necessary documents by the deadline.
Comparing Loans and Scholarships
Repayment: The student loans are to be repaid with interest, while scholarships do not need to be repaid.
Cost: Scholarships are usually the most economical way to finance your education because they do not accumulate interest.
Availability: Scholarships tend to be more competitive to get than student loans, as they are mainly given on a merit-based or need-based basis.
Conclusion
Student loans and scholarships are both means to finance your education; however, it is necessary to know the differences between them and to make a choice carefully. Loan and scholarship opportunities provide a way of funding your education while at the same time reducing the financial burden.
The article has been written by Bahaa Abdul Hussein and has been published by the editorial board of www.fintekdiary.com
