In the United States today, most students will need some type of payment assistance for either undergraduate or graduate schooling. Education is becoming more and more expensive, while people's incomes are simply not able to keep up with the constant increases in tuition. According to a Financial Advisor Centennial Colorado, students are incurring more debt since more students who are unable to find jobs right out of undergraduate decide to get a graduate degree. A Financial advisor Denver Colorado associate wrote an article about how debt is becoming a major issue for students because they have to borrow so much to go to school nowadays. It is not uncommon for a student to a debt of $50,000 or more to pay off in the future, especially medical or law students. It is important for students to be aware of how much money they are borrowing (if it is a loan situation) and be prepared to start paying it back after school. Below is a list of the most common forms of payment assistance available to students:
1. Government loans are by far the most common type of finance assistance to students. Since 2009, only the government can award student loans, whereas in the past students were able to supplement their government loan money with private sector loans. There are two types of government loans available. The first type requires the student to pay the interest on the loan while they are in school, the other type allows for deferment of the entire loan amount (including interest) until after the student is finished with school.
2. A grant is money that is usually awarded by the state or federal government to a student. This money does not have to be paid back. These usually have a long list of requirements the student must constantly be working towards while they are using the grant money.
3. Scholarships are also monies that do not require repayment of the principal plus interest. Scholarships can come from a variety of places, such as privately owned companies, the university itself, the federal, state, and local government or just private citizens.
4. Finally, the federal-work study program is yet another way students can make money for school. Work-study means that the student will work on campus and in return they will get paid over minimum wage to compliment their federal loan. It can work very well for some students who are able to work at least part-time and go to school as well.
It is important for all students to be aware of what type of money they are accepting for school. Some students find themselves in a tough spot because they do not know what they are being awarded. Most schools do have offices for students to discuss their loan or borrowing options if they are unsure of what they are being awarded. The important thing to remember is to be an educated consumer on debt and the various payment assistance plans that are available to you.
source ezine