A scholarship is a money-based award specifically designated for education-related expenses. Qualification for scholarships depends on the individual scholarship program and awards can be based on merit, talent, or academic performance.

What is a student loan scholarship?

What are Student Loan Scholarships? Student loan scholarships could help pay off your college debt. Unlike most scholarships, the money is not for your tuition. But there is more to student loan scholarships to know about. For one, you may need to be out of high school to apply.

What’s the difference between a scholarship and a loan?

A student loan is different from a scholarship primarily in that a student loan must be repaid and a scholarship does not need to be repaid. Scholarships can come from a variety of sources, including nonprofit organizations, private companies, universities and colleges, and professional and social organizations.

Do you have to pay back a scholarship?

Students do not have to repay grants or scholarships, which are considered gift aid. Grants are typically awarded by the federal government, states or colleges and are usually based on financial need.

Can I pay off my student loans with scholarships?

10 Grants to Pay Off Student Loans. If you have federal or private student loans, you may be eligible for grants or debt scholarships based on your profession. Below are 10 national student loan grants that might be available to you to pay off some or all of your debt.

Can you use scholarships for anything?

Remember, scholarship money can be used to pay for any education expenses deemed necessary by your school. This could include books, laptops, lab equipment, housing, and more.

What is the advantage of a student loan versus a scholarship or grant?

Loans are the more commonly-used type of financial assistance. The difference between loans and a grant or scholarship is that they’re not “free” and need to be repaid, with interest. However, they often have fewer requirements to qualify and are in greater supply, so they’re accessible to a broader range of people.

What are your responsibilities when you take out a student loan?

If you take out a federal student loan, the government requires that you participate in entrance and exit counseling. Entrance counseling takes place around the time you sign your promissory note, before the government distributes your loan money.

What happens if you don’t pay back a cosigned loan on time?

If a loan goes into default, a lender could take legal action against you or garnish your wages or bank account. Even if the borrower dutifully pays on time, the loan will count as part of your own debt, which could affect your ability to get new credit for your own purposes.

Can you lose a scholarship?

Failing to meet the academic standards for your scholarship is a sure way to lose some much-needed money. Other scholarships are only available to students who attend a certain school. If you decide to study outside of that group of majors or outside of the specified college, you could lose your scholarship.

Does scholarship money expire?

Applying for scholarships is an important, must-do part of college prep, but it’s important to note what many students don’t ask: Do scholarships expire? The answer is yes, scholarships can expire.

Do student loans have to be paid back?

Unlike grants and scholarships, loans are money that you borrow that must be paid back with interest. In most cases, you must repay your loans even if you don’t complete your degree, are unhappy with the education you received or experience financial difficulty as the result of unemployment or bankruptcy.

How do I pay back my education loan?

The most common method to keep your education loan repayment organized and self-driven is EMI (easy-monthly-installment). EMIs are fixed amount of sum decided at the time of taking a loan which students can pay every month to repay the study loan step-by-step.