Scholarships, Loans, Grants
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Scholarships, Loans, Grants |
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 In the world of financial aid, there are many different forms of assistance
available to students and each serves a slightly different purpose. Many
students assume that words like scholarship, grant, fellowship, internship, and
student loan are interchangeable.
For each variety of assistance, there are different tax
stipulations, service requirements and repayment expectations attached. Students
on the hunt for financial aid should know what they are looking forMost scholarships are financial awards given to eligible students with no strings attached. Typically, if you win a standard scholarship, unless it is renewable, your interaction with the donor ends the day you receive your check. According to the IRS, if you are not pursuing a degree, the entire scholarship is taxable. For those students using the scholarship for college, any portion used for tuition, fees, books, and supplies is not taxable. Any funds remaining after your expenses are paid for, however, are subject to tax. There is not typically a service requirement or other stipulation attached to the scholarship upon receipt of the award; however, you should check to be certain. Scholarships are offered in many varieties: sweepstakes, essays, competitions, for traditional and non-traditional students alike. Occasionally scholarships require that you do a specified amount of community service after receiving the award. Like scholarships, grants are cash awards that do not need to be repaid. There are federal grants, state grants, and grants issued by private businesses and organizations. Grants are frequently awarded to graduate students in exchange for research work, but one of the best-known student grants, the federal Pell Grant, is awarded to undergraduate students. Grant providers will stipulate whether their grant should be used toward tuition, research costs or additional expenses. Fellowships are typically awarded to pursuers of graduate or doctoral degrees. Although providers don’t seek repayment, they will frequently ask that students perform research work as a part of the deal. The work may be tedious, but it is usually worth the effort; it is not uncommon for stipends, in addition to tuition coverage, to be a part of the fellowship package. Fellowships tend to be lucrative, and they can get pretty competitive. Students who demonstrate exceptional merit are usually the top runners. Most students know the difference between a scholarship and an internship; however, for those that need clarification, an internship is an opportunity to work within a business or organization that you would otherwise need a degree to hold a position in. While some internships offer monthly stipends for students participating in their programs, others are unpaid. There are many professions that require students to have participated in an internship program before they can be hired as an employee. It’s a good idea to find out how most professionals in your field of interest secured a position in their field because you will likely discover that without the help of an internship most would not be where they are today. When you are considering an internship there are several things to think about before you accept a position. Ask yourself: How will it help me? What is the time commitment? Is there a stipend? And of course, is there a possibility for employment after the internship? While not all forms of financial aid, such as loans, provide you with free college money, they help you pursue a higher education and get training in the career of your interest. When looking for ways to fund your education, you should check out all the different options available, from college grants to student loans. Any form of aid will help get you on the career path you desire. |
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