Grants and Student Loans as Financial Tools for College Education

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A college education is one of the best investments that you can make. Unfortunately, not everyone has the means to pay for college. The cost of going to college can be quite overwhelming even when you’ve got savings and family members to chip in on expenses. However, this isn’t reason enough to give up on your education especially when there are financial tools like grants and student loans to help tide you over. Here is a quick look at the current cost of college education and how you can use these tools to your advantage.

Cost of College Education

Sadly a rise in the cost of a college education has been observed this year. This cost would vary depending on the type of school you choose. In general private school education is more expensive than public colleges or universities. Average tuition and fees in US public colleges are approximately 73% lower than their private counterparts. The 2021-2022 average tuition and fees for a public college is $10,388 while the average sticker price for a private college is  $38,185. Given these figures, it is not surprising to see that a college education still remains to be a financial challenge for a lot of people. 

Aside from tuition and fees, there are also miscellaneous expenses to deal with. These include books, school projects, research, room and board, and daily expenses. The daily expenses alone can rack up to thousands of dollars in a year. This is why some parents start preparing for their child’s college funds as soon as their child starts primary education. Those who have to fend for themselves usually take on part-time jobs to support their college education.

Scholarships and Grants to Ease Financial Burden

Some students are privileged to have parents or family members to take care of their college expenses. But for students who have the sole burden of shouldering these expenses, the costs can be discouraging. One way to ease the burden is to avail of financial assistance in the form of scholarships and grants given by private or government institutions.

Scholarships are usually the preferred financial aid among students because they do not require repayment and may even offer some incentives for students who perform well. There are different types of scholarships, usually reflecting the values of donors or benefactors. For instance, is quite common for Universities and other educational institutions to award academic or athletic scholarships to students who excel in their chosen field. Scholarships may also be granted partially or in full depending on the qualifications of the student. Some institutions also grant scholarships based on the need or financial status of the student. It would be a good move to scout for scholarships that match your skills, talents, and finances to increase your chances of getting a full scholarship.

Another type of financial aid that college students can explore is grants from the government. These grants are need-based or given to those who are financially incapable to pay for college. An example of this is the federal student aid available to students in the US. Other countries also have government grants to indigent students and those who require financial support.

Student Loans as a Source for College Fund

Even with the grants mentioned above some students still find it difficult to afford a college education. Thus the need to supplement these grants with a student loan. In a nutshell, a student loan is a type of loan designed to help pay for post-secondary education and expenses related to it. The terms of the loan would of course vary depending on the lender. In general student loans have lower interest rates compared to other loans and repayment may be deferred while the student is in school. Student loans are available from both government and private institutions. Given that this is a loan your credit score is also a factor to consider. Should you have bad credit and do not qualify for a student loan you can opt for short-term financial solutions designed for those struggling with bad credit. There are also private institutions offering personal lending solution for those who need cash that can help you.

As mentioned earlier, a college education is one of the best investments that you can make. It may be financially challenging right now but getting your degree is not impossible with help like financial assistance, grants, and student loans within your reach.

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