Rebecca and Christina completed their secondary school education. Being together right from kinder garden they chose to go to the same college. Of course, they were aware of the cost and funding required for completing their graduation. But they had absolutely no idea about scholarships or grants. They decided to talk to someone about knowing the ways and means of funding their college education. That is when they struck upon Mr. Gilbert their English teacher, who always helped students in making career choices and funding their cost of education.

The same evening both left to their school, where Mr. Gilbert was returning from a meeting. Having seen them, Mr. Gilbert inquired their well being and also the reason why they were back to school, when it was time to go in search of colleges. After hearing them, Mr. Gilbert started explaining to them about funding cost of education, needs for scholarships and grants and basics about scholarships and grants.

Funding cost of education

High cost of college education is the reason why many students fail to complete their graduate studies. Cost of education is so high, which requires funding from a number of sources. The sources of funds are scholarships, grants, personal finance and loans. Again, it becomes important to exhaust the most beneficial options and then go for the next best option. This were it becomes important to understand the nature and cost of each source of finance. Among all the alternatives scholarship is a free money option. Hence, the first and the best one that should be exhausted.

Need for Scholarship

Scholarships are funds granted by the Federal Government sponsoring the educational cost of a student, subject to his fulfilling certain conditions. This first of all requires the student to make an application and subject to his qualification the grant is decided. It is like prize money offered to students for their accomplishment on required lines. Hence there is no question of repayment of scholarship amount. It is important for a student to ensure he gets his scholarship amount which is free money.

Basics about Scholarships and Grants

After having understood the need for scholarships and grants, it is time that we understand certain basic aspects of scholarship. They are as follows

• Scholarships may be offered either by college authorities or by outsiders.
• Scholarships are known in the name of merit aid, awards, gifts and institutional aids.
• Scholarships are offered for a variety of reasons. There are innumerable reasons such as being tall, having a particular surname, belonging to a particular community, having a peculiar habit or mannerism and the list goes never ending.
• Organizations such as corporate houses, high schools, communities, clubs, unions and religious groups offer scholarships to students sponsoring their education.
• Scholarships such as National Merit Scholarships are granted to students with an annual award of $2,500 based on the PSAT score in your junior high school.
• You should careful about scholarship scams. Dare not waste your money for nothing at all.
• Granting of scholarships limits your other financial aid.
• Your scholarships may or may not recur every year. You should be aware of the requirements such as reapplication or renewal.
• Be sure about the papers to be enclosed while making an application, even a small mistake might deprive you of your opportunity to in a scholarship.
• Scholarship amounts used for purposes other than payment of tuition fee is subject to tax.

Both Rebecca and Christina thanked Mr. Gilbert for having rendered a wonderful lecture on funding and scholarships in particular. Being more than sufficiently enriched with information both the friends started their search confidently. Are you ready for a lecture from Mr. Gilbert?