» Financial Help
Whether it is to meet smaller monthly expenses, fund an education, fulfill the dream of owing a house or cope with an untimely tragedy, people extensively seek financial help. There are a number of sources from where one can get financial help, including the governments and banks. The type of financial help would determine the interest rate or whether the money needs to be repaid at all.
Types of Financial Help
It is critical to ensure that you are getting the right type of financial help. For this, one can seek the services of a financial adviser or study the options very thoroughly.
Loans: A sum of money that is given or taken on a temporary basis for a certain period is called a loan. Factors like purpose and income are determining factors when approving a loan. There is legal obligation on the borrower to repay the loan. Several financial institutions and government bodies offer a variety of loans, which can be classified into government loans and private loans.
Government Loans: Students who attend school can seek loan from the government. Typically, the school determines the limit of the loan, by considering tuition fee, living costs and other expenses. The type of loan that a student can take advantage of is determined by government agencies. Subsidized loans are also available, wherein the interest is paid by the government. The interest on unsubsidized loans accrues while students attend school. Due to low interest rates, students prefer government loans.
Private Loans: Students who are unable to avail of government loans can opt for private loans. Private loans are offered by individual banks to students who have sufficient credit and an option of co-signing with someone who has sound credit. The rate of interest is usually high in private loans. The terms are also less negotiable.
Grants: A grant is a sum of money that does not need to be repaid.
Government Grants: Students who can be classified in low income brackets are eligible for government grants. However, they have to maintain a required level of grand point average (GPA) to remain eligible for the grant.
Scholarships: This form of financial help is extended to students who show considerable merit in their academic performance. This money need not be repaid.
School Scholarships: Students can apply for these scholarships on the basis of their GPA and contribution to other events. Some scholarships may award the entire tuition fee and accommodation expenses, while other scholarships maybe worth only a few hundred dollars.
Private Scholarships: These are provided by private organizations.
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