Obtaining Federal Financial Aid for Tuition Assistance: I’ll take Option “A” Please!

There are three things that are commonalities among 99% of the student population: student loans, cramming sessions, and an abundance of freedom. For the typical student, student loans and debt are a fact of life. The reality is that most students could not afford to attend university without some kind of financial assistance, and if their parents can’t afford it there are select few options that remain.

Student loans aren’t always feasible, as many people have trouble coping with the long term repayment plans or set monthly budgets that are imposed by most forms of student loans. Consequently, students that had the possibility to do well in university or college are having to abandon their programs and take up a job in order to get by. As you can imagine, no one really benefits from that situation.

What options are available to students that are feasible and affordable in the long term?

a) Federal financial aid – The North American population is fortunate in that both the United States and Canadian federal governments offer a significant amount of financial assistance for students that are not in the financial position to pay for their university education themselves.

The advantages of federally subsidized student loans is that the repayment terms are generally more lenient when compared to friends/family or a bank, and that the federal government doesn’t expect you to pack back your loan immediately. Many students who choose this option are quite happy with the fact that interest generally does not start accruing until after their graduation or that the government doesn’t expect them to begin repayment until after their graduation.

In order to qualify for federal financial aid and tuition assistance you will need to meet specific criteria: your parents aren’t in the position to afford your education, and you don’t have any sizable assets that you could liquidate to do so. Does that sound like you? Perhaps it’s time to get in touch with a counselor and start the application process!

b) Traditional student loans – Just about every bank or educational institution around offers some kind of student loan or financial assistance program. These loans are a great in the short term for the payment of tuition, living expenses, and textbooks, but their interest rates and repayment terms can be difficult to manage in the long term without careful financial planning.

If you don’t qualify for federal tuition assistance (for whatever reason) you may find relief in the financial assistance programs offered by your school. Failing that, there’s always a bank willing to lend you some money (supposing you haven’t declared bankruptcy).

c) Scholarships and bursaries – There is no way to guarantee your continued acceptance of various scholarships unless your academic performance is nothing short of stellar. Keep your grades up and apply for as many scholarships as you can.

The most obvious drawback is that there is no way to guarantee your ability to receive the scholarships or that the scholarships will pay the entire amount required for your tuition and textbooks.