The Difference between Students Loans, Grants and Scholarships!
Whether you're fresh out of high school or planning to continue your education after spending years in the working world, figuring out how to pay for college can be a challenge. Many students drop the option of college just because of the expenses involved in it. But there are many solutions to this problem since student loans, grants and scholarships make college education more affordable. However, it is necessary to understand the difference between each of these funding options. Understanding the difference between these three can help you develop a plan of action while preparing to head to college.
Student Loans :
Student Loans are a form of finacial aid given to individual that will require them to pay back. It is a type of fund that can be used to pay for fees, tuition and other educational expenses. Most of the people who attend college use these loans in order to pay for their post secondary education. But you must repay these loans as well as any accrued interest after you graduate following a grace period. The repayment scheme varies according to the loan and ranges from 6 months to 3 years from the day of graduation. Moreover, there are two basic types of student loans – Federal Student Loans and Private Student Loans.
Grants :
Grants are yet another form of financial aid given by the government. They are like scholarships which, unlike student loans, do no have be repaid. Basically, the grants are based on the academic merit as well as the financial need of a student. Grants are free money and a person who receives a grant need not to pay it back. Though they provide support for college education, however, they do not cover all the expenses. It is difficult to qualify for student grants. There are two main types of grants such as need-based grants and merit-based grants. Non-profits, federal and state governments are typically the most common providers of grants for college.
Scholarships :
Similar to grants, Scholarships are funds for education continuation for the students who want to pursue a college degree. It is one of the best funding options that people can get to finance their college education. Like grants, scholarship also does not need to be repaid. However, many scholarships focus more on academic merit as well as personal achievement than financial condition. These are usually given by individuals and private organizations and can be given for multiple reasons. The requirements of scholarship are not just limited to academics and financial condition. Your volunteer work, work experience, and involvement in extracurricular activities are some examples of possible criteria for scholarships.
