The difference between student loans and scholarships is that while student loan is a type of financial assistance provided to the student for their studies, the student has to pay back the money after a certain amount of time. At the same time, scholarships are awards given to students who cannot pay their college fees. They cover the tuition expense, and the student does not have to pay back the money.
For most students, tuition fees for their higher studies is a big financial question. How will they pay for college tuition if they do not have the money to cover such an amount? During this situation, student loans and scholarships come into handy. Unfortunately, there is no easy way. There are many steps and things to take into consideration while looking for it.
Most of them give scholarships to students on a merit basis. They look for students who are either good academically, good in sports, have great leadership qualities, have the potentials to give back to the community, etc. Some of them are reserved scholarships for minorities like students with good academic history from certain countries or financial backgrounds. Specific fields of study also boast the chance of getting the scholarship. There are various scholarships for children of veterans, students with specific medical conditions.
There are different types of scholarships funded by various individuals, organizations, companies, private sectors, etc. each of them focuses on a particular field of study. Some will be for students of specific gender, nationality, ethnicity, religion, etc. It will be wise to apply to as many scholarships as possible to have more chances to get it.
So, where will you look for scholarships? To find them, you need to search online as well as people you know. Ask your professor to help you out if they have any knowledge, ask people who have applied, or gotten scholarships or people with connections. During this time, you need to research and dig out all the scholarship schemes. Go through their merit list and requirements. You can also check platforms like Facebook and see if people are talking about it. In case you plan on traveling to another country for your studies, look up the place and see if you can adjust to such an environment.
You can ask for information about the scholarship from your previous college. If any students have gotten it, they will probably have some valuable information. Some of the websites that give information about scholarships you can check are scholarships.com, U.S. Department of Education, CollegeNet.com.
Be careful while you browse the internet; make sure that the website is genuine and legit, do a double-check if needed. Many scams happen on the internet. If you do some research, you will find just the right one for you. Do not lose hope, thinking you do not have what it takes. It is easy to feel discouraged. If you are finding it hard, contact an agent that deals with such things.
On the other hand, student loans are loans you take, which you will have to pay in the future. Before thinking about taking a student loan, consider taking a job along with your studies to pay your fees, look for colleges that are less expensive, or look for grants and scholarships. It will be easier to take a loan now, but it won’t be that easy when it is time to pay.
While borrowing the money, you need to look for your best options. Government loans are probably the best option because they will have a comparatively lesser interest rate than private banks or individuals. They are also easier to get and have a flexible repayment structure, but it does not cover all the expenses. They have their limit on how much you can borrow.
Other private loans will get you enough money, but the interest rate is very high. Moreover, it is tough to get any private loans because you need to prove that you can give the money back. Most times, the students are unemployed, so it becomes even more challenging.
Before you agree and sign the loan, calculate how much you will have to pay every month and the interest you will have to cover. You will need to do your homework by running some numbers so that you don’t have to suffer later when it is time for payback. Understand the consequences thoroughly before taking any step.
Both Scholarship and Student loans help cover tuition fees for the student, but scholarship is way more student-friendly than loans because you don’t need to pay back. Before looking for loan options, look for scholarships that you might get. All the information is pretty much available on the internet. You have to do some research and get the one that best suits you. If a scholarship is not available, you can also opt for a loan and see it as an investment rather than an expenditure. You can give back when you get a proper job after college. You need to make wise decisions when it comes to taking loans. Talk to a trusted individual and ask for advice before taking the step