It can be a very expensive time for families when students start on higher education, but financial aid is available in many different forms to help them along the way.
Starting higher education is a very exciting time for many young students. For many it is the first time that they have maybe lived away from home, been responsible for themselves and they see it as one great big adventure. Well, the other thing which many people don’t realize is, it’s so expensive! Many just don’t realize how many things there are to pay for:
Tuition Fees
Room and board
Books and Supplies
Boy can it all add up!
Higher Education Financial Aid
There are different types of financial aid available; this varies from state to state and from student to student, depending on personal circumstances, grades etc. Generally the options are:
Grants
Scholarships
Low interest student loans
Education tax benefits
Some are merit based, and others are needs based.
Merit Based Financial Aid
Merit based financial aid can be awarded as grants or scholarship by an individual university or college, or by an outside organization. Generally they are awarded because of outstanding academic achievement, or maybe for some other special talent, depending on the criteria of the individual scholarship. Sometimes scholarships may be awarded because of affiliation to groups and charities (e.g. Boys Club, YMCA) or for showing leadership qualities or some other personal characteristic. Merit based financial aid is not ‘means tested’; there is generally no regard for the individual financial need of the applicant. Athletic scholarships are one type of merit aid which takes into account the athletic talent of the applicant.
These scholarships do not have to be repaid, but all of the scholarship requirements must be met.
Needs Based Financial Aid
Needs based financial aid, however, is individually awarded on the basis of the financial needs of the family of the student. There are guidelines to determine whether a particular student is eligible for needs based financial aid, usually dependent on the yearly income of the family. The Free Application for Federal Student Aid (FAFSA) is a form which can be filled out before the start of each academic year to determine eligibility for this federal student financial aid. It is available for undergraduates and graduates and will help to benefit the community.
No Loan Financial Aid
Since 2001, some universities have eliminated loans from their financial aid packages. These programs are particularly aimed at students from lower income families, and each University has individual guidelines and requirements. This initiative was designed to attract a higher number of students from the lower socioeconomic backgrounds and help to reduce student debts.
Loan Cap to Financial Aid
Other universities have decided to adopt a ‘loan cap’ program, which is designed to help reduce the costs for low income students. This can be per year, or for the combined four year term.
There is one other options that has recently become very popular to those who need a less expensive alternative to the traditional aspect of higher education. Online learning, university programs and courses available online, and sites such as educationforadults.com, offers not only prospective students choices, but returning students as well. These initiatives have all helped to open up the doors of higher education to students from lower income families. Higher Education is now available to all, you’ve got to put in a few years of hard work, but then you can spend a lifetime reaping the rewards.