According to our research, one of the most frequently asked questions regarding higher education is “What are the four main types of financial aid?” It is unfortunate that some people are unable to begin or complete their field of study because they simply do not have the money, but there are ways to address this in some form or fashion by using what is called financial aid. Here a look at the four most common approaches to this issue.

1. Grants:

This type of funding can be used for tuition costs as well as any other expense that is directly related to studying. These grants can be given by educational institutions, private organizations, professional associations, and federal and state governments. This type of financial aid is granted upon a student’s financial needs. Grants differ from loans in that they normally do not need to be reimbursed by the student.

2. Scholarships:

Just like grants these do not have to be paid back. They are awarded to students based on performance for certain merits such as sports ability, academics or music abilities. There quite a few scams for scholarships so proceed with caution. Never give you credit card details out for a “one-time fee” in exchange for a scholarship. You should always confirm with the school exactly what kind of scholarship programs they offer.

3. Student Loans:

These differ from the above mentioned in that these must be paid back by the student. Loans can be either subsidized or unsubsidized. When the loan is subsidized the government will pay off the interest owed. If the loan is unsubsidized the interest must be paid off by the student.

4. Work Study Programs:

This type of aid allows the tuition fees to be deferred by the student who works in a particular field at the same time as attending school. There are no loans involved so you won’t have to pay with money, but instead you will be paying with the work that you do.

Again, these are the common types of financial aid. Grants and scholarships involve no money on the student’s side, while student loans do. Work study programs have to be reimbursed by means of working for an organization which is exchanged for your tuition fees.

 With any type of financial aid there is a lot of paper work and organization that needs to be both initially will the application and once the aid has been granted. It is very important to start the process of getting funding as soon as possible as many of these financial aids work on a first come first serve basis. You could jeopardize your position and you may have to wait a full school year before you can start studying. You now know the answer to your question of “What are the four basic types of financial aid?”

This is the third installment in our student loan series. Be sure to check back for updates…

Have you heard of student loan consolidation and how it can help you save money? The truth is, there are several very big and very real benefits to consolidating your student loans. Even better, it’s not as difficult as you may think to get your loans consolidated. Here’s a breakdown of the benefits of loan consolidation and how you can do it quickly and easily.

The Benefits of Student Loan Consolidation

1.  A Better Credit Score–People who are recently out of college often have a lot of debt in the form of both student loans and credit cards (remember those student credit cards that were so easy to get?). This, compared with the relative lack of income that most college grads face in their first few years of independence, usually means a negative credit score. This lower score can, in turn, prevent you from getting new credit and good interest rates on loans, such as home and car loans. Consolidating your student loans lowers your monthly payments, freeing up more capital each month. That, combined with timely payments on your loan each month, can mean an improved credit score in time, which will be a great benefit to you when you go to get that first mortgage.

2.  Convenience–It’s a lot more convenient to pay one student loan bill each month than it is to pay several. It’s easier to remember, and it uses up less natural resources in the form of paper and fuel to deliver the bills to you. By consolidating, you’ll be able to pay your student loans in one monthly payment, which will make your life a lot easier. 

3.  Lower Monthly Payments–When you consolidate your student loans, your monthly payments will go down, as you’ll be saving money on interest by having one loan rather than many. This will give you more spending cash to work with each month, which can translate into a better standard of living.

It’s easy to get a student loan consolidation. All you have to do is contact your lender and request one. Your lender will guide you through the process, and all you usually have to do is sign a piece of paper aknowledging the consolidation. By your next payment date, you could have all of your loans rolled into one, and be enjoying a much simpler financial life.

This is the second installment in our student loan series. Be sure to check back for updates…

If you’re drowning in student loan debt and don’t know how you’ll ever make those monthly payments, you’re not alone. Many young (and even older) adults just getting out of school are in the same boat as you. Times are tough, and even with exceptionally low student loan interest rates, you may still be saddled with a monthly payment your entry level job at Sears just doesn’t cover.  This may be especially true if you’ve opted to get a place of your own instead of following the majority of your peers back to mom and dad’s house after graduation.  

If those loan payments are keeping you from living the lifestyle you expected once you had your college degree in your hand, you may be in luck!  There ARE options out there to reduce, or even eliminate your student loan debt.  Here are the top scenarios, one of which may be right for you!

The Military – The military has student loan forgiveness programs that will help you get out of debt. The Armed Forces Student Loan Forgiveness program will repay as much as $2,500 worth of student loans to borrowers who served between 9/11/01 and 6/30/06. The National Guard also offers a student loan forgiveness program that will repay as much as $10,000 worth of student loans to each qualifying individual.

Teachers – The Teacher’s Student Loan Forgiveness Programs pays your student loan debt in exchange for you taking on a teaching position in an area that is traditionally short-staffed, such as Math Special Education. This program will repay between $5,000 and $17,500 of your loan after at least 2 years of full-time teaching.

Head Start Staff – If you volunteer in a Head Start program, you may qualify for a very generous loan forgiveness program after a few years in the position.

Serve Your Community or the World – If you join the Peace Corps, Americorps, or VISTA (Volunteers in Service to America), you can get at least part of your student loan debt repaid for you.  Of course, you must remain in your chosen volunteer program for a certain period of time to qualify.

Become a Child Care Provider – There is a big push to recruit highly educated early childcare professionals, and the federal government is willing to reward you for working in a child care center by repaying up to 100% of your student loan debt.  Visit http://studentaid.ed.gov for more information on which child care centers qualify for this program.  

This is the first installment in our student loan series. Be sure to check back for updates…