Introduction to Student Loan & scholarship Types

It’s time to start thinking about College Scholarships and Loans. As you prepare to go off to college your head is filled with all the excitement, leaving home going somewhere new, meeting new people, learning new things, preparing for your future. Oh but wait, how are you going to pay for all this? Going to college can cost a lot of money, it is money well invested for a great education and a good job to follow but how do you come up with the money now?

Not many of us have the finances to pay for college right out of our pockets.

With that said we all need help financing college. What help can we get? Student Loans and Scholarships are the best way to go. Student Loans and Scholarships come in all shapes and sizes. With a little time and research you can find the ones that can help you out the most.

The difference between Student Loans and Scholarships is that student loans need to be paid back where scholarships do not need to be paid back they are gifts awarded to you for many different reasons, like good grades in high school or sports scholarships. There are also many other types of scholarships that we will discuss later.http://courseleaf.ua.edu/introduction/studentfinancialaid/typesfinancialaid/

Let’s talk about Student Loans

Let’s talk about Student Loans. This can be very intimidating at first, borrowing money to go to school knowing that you will have to pay it back. The good news is, usually you do not have to pay the student loan back until 6 months after you have left college. This gives you time to find a job and get established so you have the resources to pay the loan back.

Remember this was an investment in your future so it is actually a small price to pay for a chance at a fantastic future.

The two biggest types of loans are Federal student loans and parent loans.

The difference is the student takes out the Federal loan and then has the responsibility to pay it back, the parent loans are where the student’s parents take out the loan and are responsible for paying it back. A lot depends on your financial situation and your parent’s financial situation.

There is also a third option, private student loans. These loans have higher interest rates but can bridge the gap in finances that regular student loans and scholarships may not cover.

One of the nice things about living in the United States is that there is a central point for accessing financial aid for Education. The Federal government has the Free Application for Federal Student Aid (FAFSA).

This works great as it will tell you (once you have filled everything out and submitted the application) what loans and grants are available to you based on the information you provided. This makes it very easy for students and parents to get all the information they need to receive student loans.

Let’s talk about Scholarships

Now that we have covered Student Loans let’s talk about Scholarships. The nice thing about scholarships is you do not need to pay them back, they are basically gifts given to you for specific reasons. Most students know about scholarships for students with high GPAs, or sports scholarships, but did you know there are hundreds of other scholarships given out for all kind of different reasons.

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A search on the Internet will bring you up a huge amount of information on scholarships. There are scholarships for students who are extremely tall; there are scholarships for students who are extremely short. There are scholarships for students who wear glasses, students with red hair, students with blue eyes, students who make apparel out of duct tape for their senior prom and the list goes on and on.

You may not fit all of these different scholarships so pick the ones that fit you best and you can apply for more than one. Most scholarships are not enough to cover all your cost for college but they will certainly cover some of the cost. It takes a little work to apply for a scholarship, most scholarships have you fill out your personal information and then write an essay of their choosing. The most important tip is to start early applying for scholarships so you have time to fill out all the applications and write the essays.for more details, visit their website.

You can also check with your high school consoler as they will have information about scholarships, grants and loans. A lot of your colleges also have a financial aid department that can help you find scholarships, grants and loans. So with a lot of research and a little hard work you should be able to find ways to pay for the cost of College.

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