Financing College Education and Repaying Student Loans - Part I

You know the importance of a college education for the future of your children, but financing it can be a complex task in itself, when it comes time to sort through admissions letters, financial aid packages, and scholarships. Once financed, loans taken out by either your children or you must be repaid, and there are a plethora of options available for this final step as well.

Selecting The Right Scholarship

1. When your children are still on their high school years, you should start searching for potential universities that offer college scholarships for deserving freshman students as well as financial aid programs funded by different organizations. You may start your search on the Internet to look for possible college financial aid options for your children.
2. Once you find a prospective university, visit their main office and inquire for any college scholarship or financial aid offers.
3. Always ask for the cut-off dates of filing and submission of college financial aid application forms.
4. Tell your children about the importance of a scholarship to their college education. Make them aware that they have plenty of options to consider as long as they have good high school scholastic records. In this way, you will be able to motivate them to study harder and make good grades, thus increasing your chances of a good financial aid.
5. You may also consider filing an application for financial aid programs funded by the Federal government. State-owned colleges and universities offer this kind of financial assistance to qualified and deserving students who want to pursue their college studies despite of financial difficulties. You may submit the FAFSA (Free Application Form Student Aid) personally.
6. Make certain that you have completed all the FAFSA requirements (such as present statement of bank accounts, monthly income records, present mortgage information, and others) and understand the rights or special advantages before accepting the financial aid for your children. You may also check if the financial aid is renewable.

Basically, there are three types of college scholarship grants that you should consider. These grants can be given to college students and to soon-to-be-college students. The three types of college scholarship grants are athletic scholarship grant, academic scholarship grant and departmental grant. Each of these college scholarship grants have its own criteria that you should consider before the grant is awarded to you or your children.

Academic Scholarship Grant

This type of scholarship grant is awarded to students who are eligible for GPA. Some colleges offer this grant to students who have achieved an exceptional academic performance before they enter college. You have to consider that academic scholarship grants are awarded to students who have received honors. This is why you should encourage your children to work hard in their academics in order to get this type of scholarship grant.

Continue reading…Part II