27 Jul How Loans, Grants and Scholarships Work
Did you know that there are tips for getting loans, grants and scholarships? Many financial aid programs will allow you to borrow at reasonable interest rates. Some loans are even variable, changing every year. For these types, the rates are comparable to that of the house loans. However, there is also a limit on these variable rates. This is for preventing the rates from exceeding the limit.
The good news is people who are not considered poor or moderate (in terms of living standards) can also apply for loans. Two examples of these would be the ‘Stafford’ Loans and Parent Loans for Undergraduate Student (‘PLUS’).
However, it is most likely that the loans you borrow will have a limit per annum. This means that you can only borrow $10,000 per year at maximum, for example.
The good news is, if you own a home, you could borrow against the equity in your property. Why is this good? It can enable you to borrow against your home at a reasonable interest rate. Usually, this interest is tax-deductible. You could find that some retirement plans also allow borrowing as well. An example of this would be the 401(k) plan.
You should also look out for grants. These are available from schools government and other outside parties. For government application, you might require a separate application. Some colleges and private organizations (this includes employers, banks, credit unions) also have grants and scholarships.
In conclusion, you should always apply for a scholarship. This is even if you think you cannot qualify. Just step into any colleges and you will find a scholarship application form. It takes some time and effort into it. After all, you are asking an external party to lend or give you money.
Alfred Chai Wei Liang