There are different types of financial assistance for full-time and half-time students who are enrolled in accredited colleges and universities. Students can apply for subsidized, institutional, and private loans. Lenders usually require proof of identity, information about your household income, university, and more. With federal loans, borrowers must complete exit and entrance counseling.
Students can choose from various options such as maintenance and tuition fee loans, and the main difference between them is that the former help with bills, textbooks, and room and board while the latter cover tuition expenses. To apply for a loan, students must show proof of unearned and earned income such as self assessment tax returns, income details, pension statements, recent pay slips, and so on. If you are married, you may have to submit information about your spouse. In addition, you will be asked to present information about your business assets, investments, and savings, if applicable. Students who are incarcerated usually do not qualify for federal loans. Some students also qualify for a battered applicant status, including those who are a victim of abuse. Students are offered loans and financial aid under different government programs and by private and institutional lenders.
Types of Financial Aid
While federal loans are offered under different programs, private loans are available from big and small banks and other financial establishments. Private lenders usually require a cosigner unless the applicant has very good or excellent credit. Applicants with tarnished credit have more limited options compared to creditworthy customers. The repayment schedule and terms are also less flexible compared to government loans. Federal loans are offered to students who are enrolled half-time or full-time and are need-based. Students enrolled in trade schools, community colleges, and universities can apply for subsidized and unsubsidized loans. With subsidized loans, repayment is deferred until the student leaves school or graduates. Graduate and undergraduate students can apply for unsubsidized loans.
Academic scholarships are one alternative for students and are usually in the form of national awards. There is plenty of choice when it comes to awards, including international, federal, and college scholarships. In addition to college-specific awards, there are scholarships by major. Your financial aid office is one place to ask about the awards available. Other sources include local businesses, community and religious organizations, and foundations. Some scholarships cover a portion of your tuition expenses and thus lower the cost of education while others cover the full cost. In addition to awards, students are also offered work-study jobs.