What is a Student Loan Scholarship?
A Student Loan Scholarship is granted in order to help in footing students’ bills while studying.
Student loan Scholarship is a form of financial aid on its own that helps students to further their education without going through the burden or worries of financial issues.
With the help of the student loan, individuals are no longer subjected to the worries of going through the trauma or thinking of how and where to obtain money to sponsor their education. It is an initiative which will help you to cover all your financial expenses during your studies.
As the name implies, student loans are to be paid back like any other type of loan granted. This should not be a call for big worries because the whole process is made easier and compatible for individuals. There’s a certain threshold for this due to some low-income earners that may not be able to combine the payments and their financial needs.
The government of the USA has high regard for the interest of the students who are living and studying in the country. The student loan is a merit-based fee that is granted to students studying and living in the UK to cover their expenses during their studies.
This type of offer is usually not for all types of intentional students as you may dream. The USA student loan is open to only citizens of the USA.
Students loan Scholarships for International Students in USA
Noteworthily, the above-mentioned student loan scholarship is basically for US citizens. However, if you’re an international student, below is the list of the student loan scholarship programs you can easily apply to.
Types of students loan
Students loans are of two types respectively, Maintenance loans and tuition fee loans.
Tuition fee loan: This covers the whole of your payment involving tuition fee alone and it is normally paid directly to the school’s account. The amount is fixed according to your institution fees.
Maintenance Loans; The two students loan, both tuition fees and maintenance always go together. While the former is deposited into the school’s account, maintenance loans are directly credited to students. The fee is assessed based on certain criteria and decided by the authorities. It is a lump payment at the beginning of the semester or yearly in most cases. A maintenance loan covers all the expenses a student is likely to make during their studies such as accommodation, feeds, books, and other petty payments.
Conditions for Paying students loan
- You must be employed: Unemployed graduates will not be compelled to pay up their loans as far as they don’t have any source of income yet. Those that are working under government or any private sector will have their loans deducted directly. Conversely, for individuals that are self-employed, you’re expected to pay off your loans too.
- Your income must be above or within the threshold: Not all workers are compelled to pay their students loans. Some pays are ridiculous so to manage such income and then paying student loan at the same time is a huge burden. This is why it is established that individuals must meet a certain income threshold to be enrolled in the repayments.
- They may be forgiven under certain conditions: They’re some cases where individuals can be forgiven if they’re owing student loans like joining the army or Americorps.
What are the differences between Loans and Scholarships?
From the two terms definition, the difference is clear however what makes them so different and why should you apply for any of the two?
- Student loans are granted on the agreement that you will pay back when you graduate and meet some conditions after employment.
Scholarship on the other hand is a free offer. It is given forever and no payments after one have graduated.
- You can not get hold of your scholarship award or even see it. Meaning if you’re offered a certain scholarship either tuition fee discounts or book allowance, it’ll be paid directly to the management account.
Students loan on the other hand (maintenance loan) is granted to students directly by crediting their account or through check. Yearly or each academic session.
- While many scholarship schemes are not granted once, student loans are always paid off in one lump sum usually as the session begins.