Credit Funding

Government grants are the grants or these are the financial aid provided by the government without any interest rates and these grants are not to be repaid back. Hence, these are a very good step for students aiming for higher education.

Requirements for student grants:-

• One of the common myths for acquiring student grants is that the students think that there are many students competing for the grants and one will not get it. This is true but not completely true. There are many students but the resources too are abundant and hence due to lack of awareness billions of dollars go unused. Hence the basic requirement is research. There is approximately $93 billion available for students this year itself.

Private grants are the grants given by non profit organizations or big businesses, charitable organizations etc. to students who intend to acquire higher degrees. This is mainly done so as to return a part of

President Barack Obama in a recent speech of his stated that education is the current need of the hour with growing competition from Beijing and Bangalore. So, in this pursuit of his he has introduced Obama scholarships which aim at providing grants to deserving students as well as moms who can’t afford the burden of education expenses due to low income.

The Obama scholarships are known as Pell grants and Federal Supplemental Educational Opportunity Grants (FSEOG) and to apply for federal Pell grant one is required to complete the FAFSA (Free Application for Federal Student Aid).

FAFSA or the free application for federal student aid is a form that has to be filled by students new or existing every year to get access to the various grants offered by the United States government for financial aid to students to pursue their higher studies. This includes scholarships such as pell grants, Stafford loans, PLUS loans.

Eligibilities for FAFSA

• The applicant student should be a US citizen, a US national or a permanent resident.
• The family income of the applicant should be less than $20000.

Federal student loans in the United States are an authorization of title IV of higher education act as amended. It is a tough job for students to pay the huge educational expenses these days and hence the concept of federal student loans – financial aid was developed The federal student loans- financial aid are the largest source of financial aid in the US shedding out more than $100 billion every year for education programs.

Federal student loans may be subsidized or unsubsidized and are of different types such as Stafford loans, Perkins loans,

Scholarships are a totally different concept from loans, grants, financial aids etc. Scholarships are granted to students by the university itself where the student studies. Schools and colleges provide scholarships to only a few students based on some parameters such as a selected community, talent etc.

Types of scholarship

Based on merit – this is most common type of scholarship awarded to a student on the basis of his extra curricular, academic or artistic abilities.

With shooting prices and increasing expenses even in the education department, students and parents are finding it difficult to fund for college and financial aids come as a great help for them. FAFSA is the Free Application for Federal Student Aid,

Federal student loans offer financial help to students enrolled at college and are generally offered by private organizations under accordance from the US Department of Education through the Federal Family Education Loan Program (FFELP) and the Federal Direct Student Loan Program (FDLP). Federal student loans cover the overall school expenses, including the tuition fees and maintenance.

Types

Four major types of student loans are available to students which can be broadly classified as Stafford Loans, PLUS Loans,