Financial aid may be obtained from many sources and may be classified into four basic categories. A student may be considered for more than one type of financial aid.
Scholarships
Scholarships are awards based on scholastic or athletic achievement or special abilities or talents. Scholastic or academic scholarships are awarded on the basis of outstanding academic performance, high scores on national standardized tests or performance in contests such as essay writing or mathematics competitions. Scholarships based on special abilities or talents include those in areas such as music, an, theatre and dance. Some scholarships may also be partially based on financial need in addition to performance criteria. Students can receive more than one scholarship.
loans
Educational loans vary greatly in how they are administered and who is the lending agency; however, they all have one thing in common -they must be repaid. [There are some educational loans which may be repaid by service such as in teaching or law enforcement.] Educational loans are usually based on financial need, but some loans are credit based. Generally, the interest rate on educational loans is lower than is available for commercial loans. Interest rates presently vary from 5-11%. The repayment period for these loans is usually long (typically 10 years) to keep the monthly small. Many educational loans stipulate that the borrower does not begin repayment until after the student leaves school and provide a grace period of 6 to 9 months after leaving school before actual repayment begins. Details about individual loan programs are given in the section titled "Sources of Aid."
Grants
Grants are awards based strictly on financial need and do not have to be repaid. Grants are available from state and federal agencies, private institutions, and private foundations.
College Work/Study
The College Work/Study Program provides employment for financially needy students to help meet educational expenses. Students must be employed by the educational institution or independent non-profit agencies in the community. Funding is provided by both the federal government and the employing agency.
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© Fall 2005 Barbers Hill ISD |
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