If you are poor and, you plan to attend college or are a parent of a child you hope will attend college, I am sure you know this. Worried about how you will be able to bear this expense. In many cases, a college education is a significant investment. The good news is that there are many options for the average family when it comes to paying for the high costs involved in higher education.

Types of Financial Aid for Educational Expenses

Scholarships You will find that there are many different types of scholarships and there are all kinds of exam requirements to be eligible for them. Some are need based while others are based, on merit. You will also find that there are many community and faith based organizations that offer scholarships, in addition to some corporations that offer scholarships to employees and their employees' children as a gesture of good will. These are an excellent source of educational funding, as they do not need to be repaid.

Government Paid Grants. This is another Financial aid source that does not require repayment. However, you must qualify on a need basis in order to receive this particular type of college aid. You can only get a paid grant if you are an undergraduate college student who has not yet earned a college degree. There is a formula that is used to determine the amount of the award that you are eligible for. This depends a great deal on your means as a family and how much you can realistically expect to contribute towards the cost of your education.

Bank Loan. It should be used as a last resort when it comes to paying for your college expenses, as this is money that is paid back with interest. There are many types of loans available and, you should carefully consider and weigh your options before taking a loan. However, if it's the only way to cover the cost of your tuition, it will be money well spent once you've managed to pay off the loan.

1) Students loans. There are three different types of student loans: subsidized, non-subsidized, and Perkins loans. You must qualify to receive an unsubsidized loan, which will cover your interest accrual until after you graduate or, you stop enrolling in the minimum number. However, you don't have to qualify to get an unsubsidized student loan that will start accruing interest immediately. If you are in exceptional financial need, you can apply for a Perkins loan through your university. These are low-interest loans that the university must repay.

2) Parent loan. These are commonly referred to as PLUS loans (principal loans for undergraduate students). These loans allow parents to borrow the necessary funds to cover education costs that are not covered by other means of financial aid. Repayment of these loans starts 60 days after the funds are transferred and can take up to 10 years.

3) Personal Loan. These loans are not guaranteed and are credit-based loans only. However, they do not have the same limited scope that government loans have, and in many cases can help bridge the gap between actual educational expenses and the amount of money you would be allowed to borrow through traditional financial aid opportunities.

Before signing up for any specific type of financial aid, it's a good idea to meet with a financial aid counselor at the university you plan to attend. They will have the best information about what steps you need to take to apply for financial aid at that specific universities and unique scholarship or grant opportunities that may be available to you through your state or college. Higher education is a dream which definitely deserves to be fulfilled. If possible, don't let financial limitations deter you from achieving your goals, rather make all financial arrangements very carefully and thoughtfully. There are many types of institutions that provide you scholarship, you just need to know such institutions, my best wishes are with you.