Scholarship Merits

Paying for a higher education is one of the most important decisions for students and their family. Expensive colleges are not affordable for many of the students and their families. It becomes hard for them to pay for fees, books and their living expenses associated with college.

Financial aid is any loan, grant or scholarship, or paid employment offered to a student for his/her college expenses. It is usually provided by different sources such as federal and state agencies, high schools, colleges, corporations and foundations. Sometimes this financial support covers all educational expenses such as fees, books and supplies, room and board, and transportation.

Federal and state governments, colleges and universities, and organizations try to make sure that college is affordable for all students by providing financial aid to the students who do not have sufficient resources to meet college costs. The amount of financial aid is determined through state, federal and institutional guidelines.

You should use financial aid that you receive to pay for necessary expenses, and if it is a loan, borrow it wisely. Don’t borrow more than what you need or what you cannot afford to repay.

There are four basic types of financial aid programs available to students.

Grants

A grant is nothing but a gift of money! Typically, grants are available on the basis of financial need and do not require repayment. The applicants are required to complete the Free Application for Federal Student Aid (FAFSA).  Generally, grants are awarded to those students who demonstrate the greatest financial need. The Federal Government, CSULB and California Student Aid Commission are some sources of grant funds.

Loans

A loan is financial assistance which enables students and parents to borrow money from the federal government, state government or private lenders that you have to repay, usually with interest. Generally, there are two main types of educational loans: Federal Education Loans that are funded by the federal government and Private Education Loans, also called as non-federal loans, funded by banks and other lending institutions.

Scholarships

Scholarships are gift assistance with no obligation for work or repayment.  They are usually based on merit, skills, special talents or high academic achievement. Scholarships do not require repayment but they may have eligibility criteria. Generally, it is awarded by schools, institutions, businesses, associations and private industry each with its own requirements and application process.

Work study

It is a program where students may work and earn money to pay for educational expenses. As you must work for this money, this employment is considered a form of self-help aid. This employment can be on or off campus. It introduces you to a new set of responsibilities, provides recommendations for future job searches and teaches you how to organize your time.