Submitted by Michael in November 2012
Every day we are confronted with the ongoing issue of student loan and expenses debt. College loans are on the verge of being sky high as it is. Therefore as a result, student have either become overwhelmed or discouraged about the worthiness of their college education. Student loan debt is on average thirty thousand dollars that are the costs that post education can leave a college student. One way to eliminate this is through the applying for scholarships and fellowships. These are worth it as they are (1) don’t build up debt to the student, (2) do not have to be paid back, and (3) are free money. The purpose of this is to educate the mind of a student of the factors that are there for the benefit of applying for student scholarships and or fellowships. I digress to the reasons why it does not build up in debt.
The first of all three mentionable reasons why student loans do not build up debt is that that unlike loans they do not create an expense for student. Right now with student loan issues of the essence is that of many college students. Student loans build up throughout the years from the unsubsidized and subsidized Stafford Loans and or PLUS Loans. They can start at 10 thousand, but can go to as far as 40 to 50 thousands if a student borrow the maximum amount of loans for Stafford loans and borrow a lot in PLUS loans. Scholarship do not build up debt for students as these is monies given to students without the need for expenses for students to come in. Up next is why they do not have to be paid back.
Paying back a scholarship and or fellowship is not in the cards for student as these are essentially gifts to students in helping monetarily the student’s education. Loans have to be paid back to either the lender or the school if you are like me that has a Perkins loan. One has to pay on average 30k in student loans. A 5 thousand dollar scholarship does not have to be paid back. Again, scholarships and fellowships are considered gifts and do not have the expectation of ever being paid back, unlike loans where one has to pay after graduation. A loan is something temporary and has a payback expectation, but is done after graduation. Now, I go into the scholarships and fellowships being free money.
Free and luxurious is the scholarships and fellowships. Based on things like academics, honor status, military background, and so forth are the basis for which a scholarship and or fellowship is granted and is clearly stated in the scholarship application. Loans have a Master Promissory Note and Entrance and Exit Counseling procedures which clearly state that the loans are a means to pay for qualified expenses and states that it needs to be paid back. Scholarships are free money as they do not have returned expectation, just that you either maintain a full/part time status or certain lettered grades or GPA levels. I know come to the conclusion of my presentation and the reasons why it is important to scholarships and fellowships applications out there, so loans can be a last resort.
Adjourning is left with these messages. It is seen and is met with confrontation with the ongoing issue of student loan and expenses debt. Debt pertaining to college loans are on the verge of being sky high as it is. Therefore as a result, student have either become overwhelmed or discouraged about the worthiness of their college education. As we all know, student loan debt is usually thirty thousand dollars that are the costs that post education can leave a college student. One way as I mentioned to overcome the need of loans is by eliminate them through applying for scholarships and fellowships. These are met with why they are featured to be the best choice over loans and they are (1) they don’t build up debt to the student, (2) do not have to be paid back, and (3) are free money. The purpose of this was to educate the mind of a student of the factors that are there for the benefit of applying for student scholarships and fellowships.