Understanding the difference between Scholarhips and Financial Aid for Boarding School
Boarding school tuition is on the rise. Parents are searching for many ways to chip away at tuition fees. The solution lies in financial aid and scholarships, but what is the difference?
When requesting financial aid, it can become unclear if money that you’re asking for will have to be repaid or not. If you’re getting ready to seek and apply for anything, first understand the distinction between scholarships and financial aid.
What is Financial Aid?
Financial aid refers to a broader term that incorporates numerous aspects. This type of aid is undertaken to facilitate the parents to acquire their children’s education, textbooks, and living expenses.
If you happen to prefer deducting your child’s boarding school tuition, financial aid scheme represents a perfect mode of doing that. This type of aid could be in form of loans, grants, scholarships, and work-study agreements.
Financial aid is designed to allow families in all income ranges to pay for tuition, books, and board so that their children will enjoy a better schooling experience.
Types of Financial Aid for Boarding School Tuition
Financial aid comes in numerous forms and serves as a bridge filler for families with bills to pay. Every type of financial aid plays a role and will specifically be tailored to meet your family’s needs and situations.
- Grants – Grants are funds given to help pay for college or boarding school education that you will not have to repay. There are several different kinds of grants, including Pell Grants that are managed by the federal government. Each year you will have to apply again for grant money.
- Scholarships – Scholarships fall under the big umbrella of financial aid. So that is one big difference. We will talk more about this type of aid in the next section. We just want you to understand that scholarships are a type of financial aid.
- Payment Plans – Depending on what type of school you are sending your child to, they may offer payment plans. It will also vary, but the basics are that the boarding school tuition would be split into multiple payments, making it easier for parents to pay the full cost.
- Loans – Depending on your family’s situation you may have to apply for a personal loan. Just be aware that these types of loans typically come with high interest rates. If you have equity in your home, you may qualify for a home equity loan which will have a much better interest rate.
- Work-Study – A work-study is where your student works part-time to help cover tuition and living expenses. These jobs will most likely be on campus, providing your family with the opportunity to lower tuition bills, while earning some work experience.
Scholarships and grants are free money that will not need to be repaid. All other forms of financial assistance will need to be repaid overtime. Just be aware of this when you are filling out different applications.
Financial Aid Sources
Perhaps you have no clue where to look for financing to help pay for the cost of boarding school tuition. A simple Google search will yield a list of options for you to consider.
Financial aid may be offered through the following avenues:
- Federal government
- State government
- School
- Private sectors
What are Scholarships?
A scholarship is a form of money that will not be required to be paid back. Scholarships are awarded to students who apply and qualify.
This may include:
- Academic achievements
- Financial need
- Unique talent (athletic, artistic, etc.)
The whole purpose of a scholarship is to help decrease college or boarding school tuition costs. This allows more students to be able to attend boarding school, even if they are from a poor background.
Unlike loans and other forms of financial aid, scholarships will not need to be repaid. This allows parents to give their children the education they deserve without the burden of paying all the tuition bills themselves.
Different Types of Scholarships for Boarding School Tuition
It all comes down to criteria for scholarships and whether your child meets that criteria.
- Merit-Based – This is a scholarship that is given for achievements that the student has attained. It may be based on academic, sports, or leadership achievements.
- Need-Based – A need-based scholarship is given to provide relief to the financial burden upon such families which have a greater financial need.
- Identity/Minority-Based – Such a scholarship has been formulated to specifically support diversity and inclusivity within the education sector.
Private/Corporate Scholarships –Corporations, public/private foundations, and non-profit organizations may offer scholarships. Such scholarships may be intended for a specific demographic, business industry, or career field.
Scholarship Sources
Scholarships can be offered by a variety of sources including:
- Schools/Universities
- Government
- Private Organizations
- Business/Corporations
- Local Community
Do not leave any stone unturned when searching for money in the form of scholarships. Most communities will set up funds in memory of loved ones who have passed on or to commemorate a legacy that was established by a specific person.
What Is The Difference Between Scholarships and Financial Aid?
The greatest divergence, already mentioned, is that scholarships are a form of financial aid that you will not need to repay. Make sure you look closely at requirements and eligibility before applying, because you don’t want to spend hours of your time if your student does not meet the requirements under the guidelines. Also, know about any repayment obligations you may have.
Boarding school tuition is on the rise, and the nation is spiraling downward in admissions as a result. Keep an eye on what your options are for your family, because scholarships and financial aid for private school can cover the full tuition for your child or make it more affordable for you to be able to pay.