Saturday, September 24, 2011
Ida, Cewek SMA Jember
Since the cost of good quality education is rising higher by the day, it becomes increasingly necessary for students to apply for loans and grants to meet this cost. These student loans and grants have several charges to them, which operate differently. A loan is given with certain regulations such as repayment period and mode of payment as well as eligibility criteria. Student's grants are given for a specific purpose such as research, though they are usually given in bits, and they may not cover the entire cost of the project. Grants are usually given by organizations such as the government or charities, and they are to aid the institution in running their learning affairs. The beauty of these is that they are not repaid and are given as a gift.
Loans attract an interest rate that is dependent on the lending institution. Usually federal student loans attract a much lower interest rate as compared to those from other private financial institutions. Apart from the interest rates, loans also have other charges who are either paid on application or are incorporated to the principal. Loans are also either paid through the college or directly to the student. Institutions that offer grants as a form of the financial aid monitor the use of these monies to ensure that there is no misappropriation and that the intended purpose is fulfilled. In such cases, they either has someone stationed permanently on the ground to do this, or they send in assessors from time to time for appraisal.
A similarity between student loans and grants is that the individual student can apply for either to cover expenses for their education. Loans are applied by the student either through the learning institution or directly and privately to the student. All federal loans go through the school before reaching the student. Private loans can either be channeled through the school or awarded directly to the student. A student may apply for a grant to fund projects that are part of the course work. Learning institutions can also apply for grants to fund the learning activities for their students. Since research ultimately enhances learning, grants can also be offered to fund these so that the quality of education for college students is richer.
Student's scholarships are a form of grant that is awarded to deserving students. Usually this is a form of education financing that most overlooks and one that is readily available and easily accessible. It is so amazing that most students opt for costly and constraining loans while this option is ignored. Most institutions that offer these only require the applicant to write an essay that may not take up more than an hour or so. And on the up side is that it is not a loan, so there are no interest rates and no repayment. It is a free funding program that is aimed at making learning easier and accessible to all. This is surely an avenue that should be pursued before taking the student loans and grants route.
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