Types of Financial Aid You Should Know About

Types of Financial Aid You Should Know About. Financial aid is financial assistance given to students for their education. This assistance can be money, food supplies, educational materials, healthcare, and accommodation. 

Educationdata (2022) states that about 83.8% of first-time students and first-year undergraduate students have gotten financial aid in one form or another. You can get financial aid from:

• Federal government. This is a financial aid that is given by the federal government of a country to students for their education. For example, the Canadian government and the United States of America’s government.
• Educational institutions. Here, educational institutions like high schools, colleges, and universities sponsor students’ education. For example, Harvard University, Princeton University, and Utah Tech University.
• State government. Here, state governments give financial assistance to students. For instance, Texas and Alberta.
• Private individuals/corporations. This is financial aid given by private individuals or corporations to students.
• Community. Here, the community sponsors a certain number of students through school. 

In the next section of this article, I discuss the types of financial aid you should know about.

Types of Financial Aid: Top 7

Below here are the seven types of financial aid you can get to sponsor your education: 

1. Scholarships
2. Fellowships
3. Loans 
4. Grants
5. Tuition Payment Plans
6. Work-Study Programs
7. Student Allowance

1. Scholarships

Scholarships are the most popular form of financial aid given to students by private institutions and the government. This form of financial aid is not to be paid back. 

As a student, scholarships can be given to you based on your academic achievement, field of study, origin, gender, or interest. You can receive scholarships from non-profit organizations, communities, religious groups, professional organizations, and local governments. 

Here are the major types of scholarships you should know:

• Merit-based scholarships
• Work-based scholarships
• Need-based scholarships
• Government based scholarships
• Military based scholarships
• Athletic-based scholarships
• Employer-sponsored tuition assistance
• Activity-based scholarships

2. Fellowships

Fellowship is one of the types of financial aid you should know about. This type of financial aid is mostly given to students in graduate and postgraduate schools. The three major types of fellowships are:

• Graduate fellowships 
• Postdoctoral fellowships
• Medical fellowships

Graduate fellowships

As a graduate student, you can get graduate fellowship assistance to sponsor your education. This financial assistance will cover your academic resources, tuition fees, health insurance, aeroplane tickets, and accommodation. 

Medical fellowships

As a student who has completed medical school, a medical fellowship is for you. This fellowship will help you learn more about your speciality practically, for instance, a physician or radiographer. 

Postdoctoral fellowships

This fellowship is given to students with a doctoral degree. As a doctoral student, you will be given time and funds to study and conduct research in any field of your choice. 

3. Loans

Loans are also among the popular types of financial aid you should know about. This type of financial aid is the easiest aid to get and is to be refunded with interest. 

Types of Student Loans

You can receive loans either from private corporations or the federal government. 

• Private Student Loans

Private loans, also known as alternative loans are loans from private individuals or corporations given to students for their education. You can get private loans from credit unions or banks. 

• Federal Student Loans

Federal student loans are loans you can get from the federal government to sponsor your education. After your studies, you will have to refund the loan at low interest rates. 

Federal student loans are the best type of financial assistance available for college residents and international students.

4. Grants

Grants are also among the types of financial aid you should know about. You can get this financial aid only when you have needs for it, for instance, educational needs.

Grants can be obtained either from educational institutions, state governments, or federal governments.

• State Grants

These are grants that you can get from individual states of a country. The requirements and qualifications of a state grant vary. So, depending on the state you want to get grants from, you can browse through their website to see more about their requirements and qualifications. 

• Institutional Grants

This is a type of grant that you will receive based on academic merit or financial needs. Institutional grants are mostly awarded by universities and colleges. 

• Federal Grants

Federal grants are grants you can receive from the federal government of a country based on your financial need. These grants are mostly awarded to undergraduate students. Examples of federal grants are the Pell Grant, Teach Grant, Iraq and Afghanistan Service Grant, and Federal Supplemental Educational Opportunity Grants (FSEOG).

5. Tuition Payment Plans

Tuition payment is a type of financial aid awarded by some universities and colleges. Here, you are allowed to pay for your tuition and other expenses in instalments throughout your academic period. 

Tuition payment plans will allow you to create a budget for your college or university costs and also avoid expensive loans. 

6. Work-Study Programs

Work-study programs are one of the types of financial aid you should know about. This financial aid is given by the federal government to both undergraduate and graduate students. 

Work-study program is a financial aid program where you will have to work and study. You will be given part-time jobs to work and get paid while studying. These jobs can be on-campus or off-campus and will be related to your field of study.

7. Student Allowance

As a student, student allowances are weekly payments you can get. Student allowance covers every other school expense except tuition fees. You can classify student allowance into three categories:

1. Students below 24 years old will get approximately $300 per week.
2. Single parents with a child will get a student allowance between the range of $300 – $400.
3. Lastly, parents with one child will get close to $500 weekly.

A student allowance is not refundable.

How to Use Financial Aid Opportunities Well

These are the top three ways to use financial aid well:

1. Create a budget. You must choose the kind of financial aid you are going for, depending on the type of school you want to attend.
2. Fill a Free Application for Federal Student Aid (FAFSA) form. This application will be used by educational institutions, states, and the federal government to assess your need for finances.
3. Do not borrow loans that are more than necessary for your education.

Conclusion 

There are so many types of financial aid you should know about, like scholarships, grants, loans, fellowships, and many others. You can get financial aid based on your academic achievement and field of study. To qualify for these aids, you must check out their requirements and your eligibility status before you apply.