Families should know how they can use scholarships, grants, and other forms of financial aid to reduce the amount of abroad education loan debt they have taken so that the pressure to repay the loan diminishes to a certain extent.
These are challenging times for students and their parents regarding education costs, especially if the child wants to pursue a study course in an overseas college.
Although most families in these circumstances have to take out an abroad education loan, they can get the help of generous financial aid that can later reduce the amount of the loan debt.
What are the different Financial Aids available to Students?
Financial aid refers to the funding that does not come from a student’s or his family’s personal savings and earnings.
It includes scholarships, grants, and work-study jobs from community organizations, high schools, colleges, state agencies, corporations, foundations, etc.
1. Grants
Grants are financial aid given by a government, foundation, or company to a student to felicitate a specific goal, such as funding overseas education.
Grants are monetary awards or gifts based on financial need and generally do not have to be paid back.
2. Scholarships
Scholarships are similar to grants in terms of repayment because you do not have to pay them back. Scholarships, however, are based on several factors besides financial need, which is undoubtedly an important reason.
Scholarship eligibility, in most cases, is based on the goal or objective of the individual or the entity funding this monetary reward.
Most student-related scholarship programs look for a strong academic record, specific artistic skills, career goals, sports prowess, ethnic background, entrepreneurial interests, and voluntary experience.
The Indian government provides financial aid through scholarships to interested candidates who want to study abroad.
Check the official website to know whether you qualify for the scholarship program and how much money this financial aid will offer.
3. Work-study Programs / Student Employment
All students can work reasonable hours during their academic year, irrespective of their financial background. They have to take prior permission and inform the universities beforehand.
Work-study Program is a type of financial aid that helps students to get a job on campus or college-sponsored jobs. It is a need-based financial help that allows students to earn additional money.
All the wages earned are paid directly to the students, which they can use for any additional or personal expenses.
4. Banks, Universities, Private Organizations, or Non-Profits
Financial institutions, private institutions or non-profits, and the universities where the student has applied for the study course also offer scholarships and grants to students who have done exceptionally well or need additional monetary support.
Important scholarship funds attached to prominent universities are in the form of federal and state grants, endowment funds, and gifts from alums.
There are also scholarship programs established by generous donors and alumni for students who are doing exceptionally well in specific fields of study or sports etc.
How to use Financial aid alternatives to reduce loan debt amount?
Students should keep on making inquiries about the various financial aid that they are eligible for and visit the websites of both private and government organizations along with the university they want to study.
Grants are a kind of free money without any strings attached, whereas scholarships might be merit-based, and the students would have to fulfill the terms of the set criteria.
Both of them can be applied towards academic bills like tuition money and study materials etc. so that the student has to use considerably less loan amount.
The student often uses the work-study amount for additional expenses that need to be covered, like study tours, food expenses, or travel costs. A student can spend this money on things he deems fit.
Once the student becomes eligible for financial aid and is offered a monetary reward, he should inform the loan officer about the money.
Both need-based and merit-based aid given to the student will go a long way in reducing the actual amount that must be paid as the abroad loan debt.
Conclusion
Hope this blog answers your queries about how to reduce the abroad education loan debt with help of scholarships, grants, and other forms of financial aid.
Counselors at the Edufund App offer expert advice that can prove a blessing in managing the loan debt by getting access to the necessary financial aid and thus minimizing the actual loan amount that has to be paid eventually.
