When it boils down to making payments for college, your family might have several options for financial aid. However, one should remember that the aid received shall determine if the same is required for you to be paid back. Students need to pay off financial aid, especially if the same is in the form of a loan. However, they do not need to pay the grants, money awarded via a work-study program, or scholarships.
Students who are eligible for scholarships and grants should exhaust the options before opting to take any loans. However, for many budget families, these financial aids do not serve enough. According to the U.S. News data, around 66 percent of graduates belonging to 2017 class opted for loans to pay up for their college. The sum total was averaged on $30,000 for each student.
With the U.S. debt in student loan reaching the mark of $1.5 Trillion, University of Northern Colorado’s Marty Somero, who is the director for financial aid mentioned that students are often responsible for completing research in terms of loans and the repayment plans. This can lead to unintentional and excessive debt. Somero mentioned that students can actually be confused with a line of options available for them. He also noted that some students might also end up taking multiple loans while losing track of the amounts owed and creditors in line.
It definitely requires a good amount of legwork along with enough time spent reading online to ensure the best action course for repayment of loans. In order to ease this burden, Somero mentions that any office or institution for financial aid can answer your common questions while providing counseling. Also, the U.S. Department of Education’s official website caters information for federal financial help options.
Students don’t need to repay the scholarships or grants that are often considered as the gift aid. Grants are usually awarded by the federal government, colleges, or states usually based upon the financial requirement of the student. Federal Supplement Educational Opportunity Grant or the Pell Grant is available for the undergraduate students that are in need of significant finances. In order to be eligible for these grants, students need to file Free Application for Federal Student Aid, termed as FAFSA.
Scholarships are mostly awarded for athletic talent, merit holders, and students with similar characteristics and achievements. Aid provided via the Federal Work-Study Program is also helpful for the students as it doesn’t need to be paid back by the students.