Brought to you by College Ave Student Loans
When it comes to paying for college, it’s no secret that it can be expensive. As a result, many students seek additional ways to pay for school. When doing so, it’s important to do your research and explore all of your options. Our partners at College Ave Student Loans took the time to quickly break down different types of financial aid.
Types of Financial Aid
While there are many types of financial aid, there are two main types to distinguish between. So, how do you know which is which? Start with this question: do I have to repay this money?
If the answer is……
- NO – The two most common forms of financial aid that you are not required to pay back are grants and scholarships. The main difference between the two is that, generally speaking, grants are need-based whereas scholarships are merit-based.
- YES – The two most common forms of financial aid that you do have to repay are Federal Student Loans and Private Student Loans. With student loans, you’ll be required to pay the money back, plus any interest over a set term. The term, repayment plan, and interest rate of your loan will vary depending on whether it comes from the federal government or a private lender.
When considering financial aid, you should attempt to max out any financial aid you don’t have to repay in order to reduce your total cost. If you need help getting started, take a look at this Money Matters Guide to Applying for Scholarships.
The College Ave Scholarship Contest
Speaking of financial aid you don’t have to repay, College Ave Student Loans is currently running a contest with $9,000 in scholarship prizes up for grabs, plus an additional $1,000 donation to charity. There will be 32 different winners of scholarship values ranging from $100 to $2,150. The grand prize winner will also receive a $1,000 donation to the charity of their choice.
Don’t miss your chance to win! Head on over to the #CollegeAveMadness entry page and enter by March 11, 2016 at 4 PM (ET) to be eligible. Good luck!