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What Are the Different Types of Further Education Funding?

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  • Written By: Lainie Petersen
  • Edited By: Melissa Wiley
  • Last Modified Date: 19 January 2020
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Many students and their parents are concerned about further education funding options, which include college savings plans, student loans, as well as grants and scholarships. The types of further education funding available depend significantly on the jurisdiction in which a student holds citizenship and in which he wishes to go to school. Students with special circumstances, such as disabilities or who are eligible for some types of government benefits, may also have access to additional sources of education funding.

In many countries, pursuing education past secondary school, also known as high school, is a costly endeavor. For this reason, many parents begin a special savings account for the purpose of further education funding. Some banks as well as governments may sponsor special accounts for this purpose, offering a higher interest rate to assist parents and students in affording the higher education they desire. Parents may also wish to work with a financial planner to set up an investment account for this purpose.

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In some cases, a student may be able to secure grants and scholarships through both public and private sources in order to pay for his education. In some cases, these grants and scholarships are offered on the basis of financial need. In other cases, students must qualify for this type of further education funding by demonstrating excellence in their academic studies, civic engagement, or by demonstrating a particular talent such as in the arts or athletics. The advantage to grants and scholarships is that they typically do not have to be repaid after a person completes school. Special grant programs may be available to people with special circumstances that make it difficult for them to find employment, such as a disability or long-term unemployment.

For individuals who cannot afford their education through savings, tuition payment plans, or scholarships, student loans remain an option. The problem with this form of further education funding is that a student must repay the loan, typically with interest, after graduating from or leaving school. For some students, student loans may be the only source of further education funding to which they have access. Some government-sponsored student loan programs offer students favorable loan terms as well as relatively low interest rates, reducing some of the burden of loan repayment. In addition, many students regard student loans as an investment, enabling them to qualify for higher-paying jobs that will allow them to make far more money during their career then they had to borrow to pay for school.

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