Navigating Student Loans, Grants, and Scholarships
As summer comes to an end, many students and families are gearing up for the excitement and challenges of the upcoming school year. Whether you’re heading off to college for the first time or continuing your educational journey, understanding your financial options is crucial. At Launch Credit Union, we’re here to help you navigate the ins and outs of student loans, grants, and scholarships to help you get one step closer to reaching your educational goals.
Student Loans
Student loans are a common way to finance education, but they come with various types and conditions. The two basic student loans are federal and private.
Federal Loans
Federal loans are government-funded and have a fixed interest rate set by Congress. To qualify, students must complete the Free Application for Federal Student Aid (FAFSA). One of the major advantages of federal loans is the variety of repayment plans available. Options include Income-Driven Repayment Plans, which adjust your monthly payments based on your income and family size; Standard Repayment Plan; Graduated Repayment Plan; and Extended Repayment Plan.
Private Loans
Private Loans have a variable interest rate that’s set by the lenders, making it a less predictable option. This type of loan often requires a credit check and in some cases, a co-signer. At Launch CU, we offer three types of personal loans: signature loans, line of credit, and savings secured. You can apply online for your personal loan by using our quick and easy web loan application.
For more information on student loans, check out our YouTube video Student Loans 101 – It’s a Money Thing.
Grants
Grants are a form of financial aid that does not need to be repaid, making them highly desirable. The most well-known grant is the Pell Grant, which is awarded based on financial need. This grant is typically reserved for students who haven’t earned a bachelor’s, graduate, or professional degree. The U.S. Department of Education will look at completed FAFSA applications to determine who may qualify for a Pell Grant, and how much they are eligible to receive.
Scholarships
Applying for scholarships is a great way to get some (or all) of your tuition paid for. Scholarships.com has many free scholarships that you can apply for. Your school’s financial aid office can also provide reliable online databases to help you get started.
Types of Scholarships
- Merit-Based: Awarded for academic achievements, talent, or special skills.
- Demographic-Based: For specific groups such as women, minorities, or veterans.
- Field of Study: Targeted at students pursuing particular majors or careers.
- Local Scholarships: Often provided by community organizations, businesses, or schools.
Navigating the world of student loans, grants, and scholarships can seem overwhelming, but understanding your options is the first step toward making informed financial decisions for your education. By carefully researching and utilizing the resources available to you, you can significantly reduce the financial burden of college and invest in your future with confidence. Remember, the right combination of loans, grants, and scholarships can turn your academic dreams into reality, so take the time to explore and apply for every opportunity that comes your way. Your future self will thank you!
