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Studentosity

Differences Between Scholarships, Bursaries, and Loans

With so many different ways to fund your education, it is easy for students to get confused. It is therefore critical for students to understand their options to ensure they are choosing the method that suits their needs. Let's go through scholarships, bursaries, and loans, to find out what they are and how they can help us.


Written by Navreen Dosanjh


Scholarships

For university and college students, scholarships are defined as financial aid that is either a one-time non-renewable award, or a renewable award that may be provided every semester or school-year. Scholarships come from many sources such as clubs, charities, businesses, governments, etc. and the helpful aspect of scholarships is that they do not have to be repaid. Some scholarships are based on achievements such as GPA, volunteering, and community engagement, while others are given on the basis of need. Primarily, scholarships are based on merit.


Bursaries

Higher-education defines bursaries as a type of scholarship that is given mainly to provide financial support. Bursaries help students pay for or cover the cost of their education. This differs from scholarships in that bursaries do not take into account your GPA, volunteering, etc., and are solely based on household income. For bursaries, the lower the household income, the higher the bursary amount. Just like scholarships, bursaries do not have to be repaid. Primarily, bursaries are based on income.


Loans

Loans, specifically student loans, are defined as funding that assists students in covering their tuition, textbooks, as well as expenses related to living. Student loans are organized by the federal government. Unlike scholarships and bursaries, loans are borrowed amounts of money that must be paid back with interest. For loans, understanding the terms and conditions associated is critical. Being smart about the interest, keeping track of how many loans and how much you are using, making the payments on time and paying attention to notices, bills, and reminders, as well as notifying the organization if you have made any changes to your school, address, and social security number are all important items to keep in mind when utilizing student loans.


As noted, there are many different financial aids that students can use to assist in their post-secondary education and it is crucial to keep track of your education fundings and to make sure you are choosing the right ones to help you on your journey!


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