Definition:
Student can apply for scholarhips online or through the College and Career Center. WHS student earned $________ in the 2008-2009 school year. Scholarships are most often given to students for one of two reasons: achievement in academics or other areas, or financial need.
Grants:
Definition:
A grant is a form of federal or state financial aid that does not need to be repaid. They're typically given to people who demonstrate financial need.
Advice:
Grants are amazing sources of financial aid for people with need. Need is determined by filling out a Free Application for Federal Student Aid (FAFSA). We highly recommend every prospective college student to fill one of these out--even if you don't qualify for grants, you may receive scholarships or favorable loans.
Loans:
Definition:
A loan originated by the government or a private bank for educational expenses.
Subsidized Student Loan:
A subsidized student loan is one on which the government actually pays the interest while a student remains enrolled in a qualified college or university. This means that any interest that would have been added to a subsidized loan balance is essentially erased by the government.
Subsidized loans are often confused with student loans that are in deferment. These loans still have the interest added to them throughout the student's education career, but no payments are due until after graduation or withdrawal.
Subsidized loans are generally reserved for students demonstrating financial aid on an ongoing basis, throughout their college education.
The most common subsidized loans are Stafford and Perkins loans.
Unsubsidized Student Loan:
Unlike a subsidized loan, an unsubsidized student loan has interest added to the balance even while a student is still enrolled in school. This means that a student's balance will likely be significantly more than what they initially borrowed by the time the graduate.
For example, a student borrowing $10,000 per year at 8%, would owe $48,666 dollars after four years of college (approximately $8,666 more than they initially borrowed).
A popular technique of students and parents looking to eliminate the "sticker shock" of an unsubsidized loan is to attempt to pay off the interest as it is added throughout the college years.
Unsubsidized loans are generally the only choice for students who fail to demonstrate a financial aid, though they still generally offer attractive interest rates (less than 10%) over private loans.
The most common subsidized loans are Stafford and PLUS loans.