If you are a student in need of financial assistance, then chances are that you have most likely considered a student loan, a scholarship, or both. Both student loans and scholarships have been very helpful to hundreds, if not thousands, of students in the past couple of years. There is no doubt that in years to come, more students will be helped thanks to these programs. Surprisingly, not all students are even aware of the difference between a student loan and a scholarship. As a matter of fact, some students make the mistake of thinking these two programs are even the same. This is totally wrong! Student loans and scholarships are two different things. And if you don’t know the difference, this article will be helping you with full insights into how they vary.
If you are a student considering applying for a student loan or a scholarship program, or both, it is best you fully understand the differences. It is always best to know what it is that you are diving into. So sit tight, and read through every line of this article. To get all the education you need, on a student loan and a student scholarship.
What is a Student Loan?
Not everyone is financially stable, and not everyone has the means to further their education on their own without help. Due to how expensive tuition fees can be at times, some students consider taking a student loan.
A student loan is simply an amount of money that a student can get from the federal government, state government, or a private organization. The purpose of the student loan can be to cover tuition fees, or any other expense related to one’s academics. Student loans are actually very easy to get, especially if one is schooling in his country of origin. There are usually different plans when it comes to taking a student loan, and your repayment of the loan will be dependent on the plan you decide to settle for.
Of course, there are criteria that must be met if you wish to get a student loan. These criteria are not too complicated. And it is usually very favorable.
Would you like to know the benefits of a student loan? If yes, then read below.
Benefits of a Student Loan
There are many benefits of a student loan, and we will make mention of just a few.
This is obviously the most obvious reason. A student loan is even a thing today due to the fact that most applicants are in need of funds to further their education. Imagine a world without student loans. A lot of important and reputable people in the world would have dropped out without completing their education. This would be very fatal.
Low Interest Rate
The reason why taking a student loan would always be better than taking a normal loan from a loan shark, is because of the fact that the interest rates of student loans are interestingly low. If you do a comparison between a private loan and a student loan, you would be surprised at how much difference is in the interest rates.
Flexible Repayment Term
When it comes to making repayments for a student loan, there is more than enough time to do this. For some of these loans, you can take as much as ten years to make your repayment. Unlike private loans that will give you months to make repayments, or to face the music.
What is a Scholarship?
A scholarship is a form of financial aid awarded to students for further education. In most cases, scholarships are given to people who meet a particular criteria and requirements. In some cases, usually in high school, scholarships are given as a reward to students with high merits or GPAs. The best thing about scholarships is the fact that you need not return the favors you are getting. That is, when you get financial assistance from a scholarship program, there are no talks about you having to pay any refunds. Talk less of interests. This is the slight difference between a scholarship and a student loan. For student loans, paying back is very necessary. And interest rates are involved as well.
An interesting fact about scholarships, is the fact that almost every school has a scholarship program. The criteria may be different, but there is usually a program you can apply from. Also, it is a good thing there are endless lists of programs to reapply for, if you failed to qualify for the last scholarship program you applied for.
In simple words, a scholarship is basically financial support awarded to a student, based on academic achievement or other criteria. Now that you know the difference between a student loan and a scholarship, below are the benefits of applying for a scholarship.
Benefits of a Scholarship
For Financial Assistance
This would also be on the list. Because it is the primary purpose of every scholarship given out there. Even if the scholarship program isn’t paying for your tuition fee, it would be to cover another expense regardless.
To make Students Even More Serious
Scholarships are usually for students with good CGPA. A student with bad results will most likely not be given a scholarship. So this makes students buckle up and try to do better in their academics. So in a way, a scholarship is a reward for being an excellent student.
To end it all, both scholarships and student loans are very beneficial to students. It is totally up to you and your parent/guardian to decide whichever you would rather go for. Just make a decision that you won’t regret in the coming future. Also, for those who are wondering if it is possible to be on a scholarship program and also get a student loan, the answer is No. In fact, there really is no need to be on free education and also ask for a loan. Doesn’t add up, does it?
Thanks for reading this article. Hope you got educated?