There are a lot of different types of financial aide for students wanting to further their education by attend a college or university. While there are some that are ‘gift’ aids, which do not need to be paid back, there are also other types which are more common. The most common are student loans from a financial institution or private organization, and are needed to be paid back once the education program is completed.
So generally, student financial aid programs are grouped into the following categories:
– Student Loans
– Work Study Programs
So you’re wondering what the primary differences between these different student financial aid programs are. There are many who can confuse the differences between a grant, scholarship and fellowship.
The differences between these financial aids
Grants, Scholarships, Fellowships
A grant is known as a ‘gifted’ financial aid for students, and these loans do not have to be paid back. Fellowships are funds that are awarded to graduate students in a college or university. A scholarship is a financial aid which is awarded based on a students particular merit or academic achievement.
Both fellowships as well as scholarships can be classified as grants. These financial aid terms are quite similar and are usually used interchangeably when representing funds that are gifted to students. They are basically ‘free’ money to help pay for their college or university studies.
A student loan is basically a financial loan which are offered to students wishing to pursue post secondary education. The money that’s received is required to to be paid back once the student has completed the study program. Although there are some student loans that are offered with zero % interest rate, mostly by charities, religious organizations and different associations, the majority of student loan programs have repayment provisions as well as a small repayment interest rate applied to it.
Work Study Programs
Work study programs provides the student with part-time jobs that enables them to earn a portion of the post secondary tuition cost and expenses through employment at the institution. Many of the colleges and universities will offer jobs to their students where they will be able to earn their school fee or part of their living expenses.
Under certain circumstances, colleges or universities may allow certain students to attend courses without paying a tuition or other costs. Certain student eligibility requirements must be met however in order for them to be eligible for the waiver.
The ideal situation for all students would obviously be receiving either a: grant, scholarship or fellowship, to aid their monetary needs. Although there are a lot of different scholarships that are available for students to apply for, beware of the ‘Scholarship Scams’ that are out there. If you have to pay a small fee up front to apply for or receive a scholarship, most likely it is a scam.