Scholarship versus Student Loans:
What separates a scholarship from student loans is the repayment policy. Once qualify for scholarships and receive it, one need not repay the amount. On the contrary, student loans have to be repaid after the stipulated time. Those students who may not fulfill the eligibility criteria for the scholarship may go for student loans. Very often, it happens that a student takes an education loan and during the course of education, loan keeps piling up and by the time student starts earning, the issue of re-payment is at his or her hand. Therefore, before taking education loan, be sure the selected career will ensure easy repayment of the loan.
Every institute sets up eligibility criteria for awarding scholarships. Similarly, criteria for scholarships vary from degree to degree, degree level to degree level, and institute to institute. Some colleges and universities subject students to an academic test in order to examine their eligibility and ability. Students with high-grade average hold greater chances for securing a scholarship that a School may be offering. There is another form of scholarship, which helps to ensure that students whose parents served the said university and college get the financial assistance. In some cases, parent’s service in civic organization also renders students eligible for the scholarship. Students receive an application form, prove eligibility to an institute and qualify for a scholarship.
Scholarships are of the following types:
Such scholarship aims at facilitating study in a career that is high in demand. Some careers belong to the overall welfare of the society, and thus, policy maker increase scholarships to encourage students to pursue the said field. For example, in the field of nursing career-based scholarships exist in the USA.
Ignoring the financial needs of a student, this scholarship focuses only on merit (in academia, sports, athletics, and more), to issue monetary assistance to students.
This scholarship program intends to meet financial requirements of the students, least equipped to support educational expenses on their own. This Scholarship Program gives high preference to excellent academic record.
To support a particular ethnic group or to remove their grievances, Ethnicity-based scholarship issue financial assistance to concerned groups. However, before awarding scholarship, some demographic factors like race, nationality, religion, and more come under scrutiny.