What are my options with college financial aid?

Serena is an exceptionally talented pianist. Hence, she decided to enroll herself into The Boston Conservatory of Music. Serena’s parents were concerned that they might not be able to afford the cost of her education. Her mother is a homemaker whereas her father works as a delivery boy with Pizza Hut’s Boston branch and the job was anything but high paying. When Serena shared her predicament with her high school teacher, he advised her to seek college financial aid.

We all are aware that the soaring cost of education has made it inaccessible to many people, especially those belonging to the lower economic strata. To counter these rising costs, the government as well as many other social organizations give out what is known as college financial aid.

If you too are interested in seeking financial aid to fund your college studies, then it is important for you to be aware of the various types of financial aid available to students pursuing studies in the USA.

Scholarships are one of the most popular forms of college financial aid. The main advantage associated with scholarships is that unlike loans, you need not repay the amount. According to Jane, a professor working with the Boston Architectural Center, scholarships allow students to complete their education without having to bear the burden of repayment.

Experts state that it is easy to get a scholarship if you happen to possess an exceptional talent in your field of study. Take the case of Judy, a student of one of Boston’s top fashion designing institute. Right from her childhood, Judy had a good dressing sense. She also displayed a knack of combining different styles and creating her own unique style of dressing. Therefore getting a scholarship proved to be a cakewalk for Judy.  

If you are interested in getting college financial aid in the form of scholarships, then you can visit sites such as FastWeb that maintain a database of the scholarships available to the student community.

Loans are another form of college financial aid that is opted for by most of the students. However, loans have to be repaid and the repayment amount also includes the interest. But most students feel that loans have made it easier for them to pursue higher education. In addition, unlike scholarships that are available only to a selected few, loans enjoy a wider reach.

When Toby, a Boston based native decided to go for an MBA degree, he decided to apply for a student loan that was offered by the federal government. Federal Stafford and Federal Perkins Loans are two of the most popular types of student loans. Student loans are directly provided by the federal government and carry a low rate of interest. In addition, most of these loans are granted without carrying out a credit check of the applicant. Similarly, the students are not required to submit any kind of collateral.

At times, even parents seek college financial aid for their wards. Consider the case of Thomas, who works with Barnes and Nobles’ Boston branch. To finance the education of his only child, he decided to apply for a PLUS [Parent Loan for Undergraduate Students] loan. These loans allow parents to cover costs that are not  covered through the financial aid package offered to their wards. According to finaid.org, ‘PLUS Loans have a fixed interest rate of 8.5% for loans. The interest is not subsidized while the student is in school, unlike the subsidized Stafford and Perkins loans. The PLUS loan charges loan fees of 4%, deducted from each disbursement check. All lenders offer the same rate for the Stafford Loan, although some give discounts for on-time and electronic payment.’

When one talks of seeking college financial aid, there are students like Jim, a Boston resident, who followed a different route. Since Jim was interested in pursuing a career in the armed forces, he decided to apply for the Montgomery GI Bill. According to Dorothy, a Boston based career counselor, the amount granted by military aid is not sufficient to cover your entire education related expenses. She also recommends trying out the ROTC scholarship offered by air force to students who are interested in pursuing a career in the air force.

Ron whose father works at Citibank’s Boston branch states that his ROTC scholarship covered his tuition expenses as well as books and other school-type expenses. In addition, he also receives a few dollars for extra spending.

Thus, if you are determined to pursue your higher education and would not like to get bogged down by your financial difficulties or the soaring education costs, then college financial aid can prove to be a vital ally that can help you to fulfill your dreams.

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