WHAT OTHER ACADEMIC FUNDING RESOURCES ARE AVAILABLE OUTSIDE LOANS?

Student loans sound like a good idea until you discover that 71% of a group of borrowers have delayed a major life milestone due to their debt. This was revealed in a survey by Gallup and Lumina Foundation. Now, how did we get here? A common saying goes that “Education is the best legacy,” and this is why many people are willing to go above and beyond just to attain this lifetime achievement.  And when every other means of acquiring the supposed life-changing certificate fails, one will be forced to turn to the unfailing means, which is the student loan scheme. 

During World War II, there was a fierce rivalry between the United States and Russia, especially after the latter launched Sputnik, the first satellite in history, in 1957. This caused Americans to worry that they were lagging in terms of technology, and in 1958 the National Defense Education Act (NDEA) authorized the first federal student loans. Only specific student groups, such as those majoring in science, engineering, or education, had access to them.

Since then, the student loan scheme has gained popularity in a number of countries all over the world, and it has been succeeding in its aim of getting more people to enroll in college. 

This is supported by a Morning Consult survey that indicates that 77% of respondents believe that college is expensive, and 52% believe that even in-state public universities—which are usually thought of as more affordable options—are not affordable. In this instance, student loans provide a means of access to high-quality education for a great number of people. Amazingly, loans fill the gap between limited funds and educational opportunities by providing for living expenses, textbooks, tuition, and even more.

 However, there are some drawbacks. It has also come to light that after graduation, student loans leave the borrowers with some baggage to deal with. The fact that most people's lives outside school haven't turned out the way they had anticipated presented the borrowers with a serious dilemma. A recent Gallup and Lumina Foundation report claims that borrowers have delayed major purchases like cars (28%), homes (29% of respondents), and other items. Debt has also caused borrowers to postpone starting a family and leaving their parents' houses. Another set of people put their education on hold; among them, 35% said they haven't re-enrolled because of their student loans. It is a serious problem.

 While some changes are being made to improve the system's efficiency, much more work still needs to be done. Although there are efforts to relieve the borrowers—such as President Biden's loan forgiveness plan which was struck down by the Supreme Court—, a new loan forgiveness plan has been announced. It would cancel an estimated $150 billion worth of student loan debt, benefitting some 30 million borrowers.

 At UnykEd, we believe that loan schemes shouldn't be the first consideration for students in need of financial aid. Rather it should be the final option after every other alternative has been exhausted. Apart from loans, what other alternatives do students have? 

1. Scholarships

According to the National Scholarship Providers Association (NSPA), there has been an over 45% increase in the number of scholarships awarded in the last ten years. However, it's estimated that $2 billion in student grants and about $100 million in scholarships are left unclaimed each year. Usually, there aren't enough applicants to award the money.

One of the most common misconceptions regarding scholarships as a form of educational funding is the notion that scholarships are only awarded to students who lead their classes. Another myth is that applicants for scholarships must always be able to demonstrate a specific amount of financial need to be taken into consideration. However, these are not entirely true. 

The truth is that there are scholarships available for a wide range of students, including those pursuing technical certifications and graduate degrees, and the requirements for eligibility vary significantly; opportunities are available based on merit, need, and everything in between. Yet, people prefer not to apply to this more convenient option because they think that applying for scholarships is daunting, time-consuming, and commonly accompanied by rejections. Sometimes, lack of access to information is also a major barrier.

2. Fellowships

Fellowships are funded, short-term opportunities that can last from a few weeks to a few years. They can be focused either on academic or professional development. They are sponsored by Non-governmental organizations, specific associations, or the government which sets the eligibility requirements.

In academics, they are designed to support various activities such as a research project or a graduate study. The financial support awarded helps to cover the costs of the graduate or doctorate student’s tuition at their institution. Apart from financing a fellow’s courses, fellowships can also provide the funds for activities that aid the fellow’s studies like trips, thesis or research materials, and presentations. It is a more rounded and robust program.

 Fellowships are generally competitive and usually admit outstanding candidates, also unlike scholarships and loans which can cater for the student's full tuition, some fellowship programs might not be able to provide full funding for their participants.   

3. Graduate Assistantships

Graduate Assistantship positions can be in the form of a Teaching Assistant, Research Assistant or Administrative Assistant. 

 Teaching Assistantships (TA) support instruction in a classroom or laboratory by assisting a faculty member with teaching-related tasks, grading student assignments, tutoring students, preparing instructional materials, etc., while  Research Assistantships (RA) assist faculty members with their research. The nature of the assistance varies by discipline and can involve a variety of activities such as library work, proposal writing and publications, data gathering, data analysis, fieldwork, and so on. 

Graduate assistantships can provide monthly wages paid in the form of either a stipend or an hourly wage and a waiver for 100% of tuition or less during the semester of appointment. 

If provided with adequate support and guidance, you can also be a recipient of these funding programs. This is why UnykEd was founded to demystify the whole process of getting into universities while addressing the obstacles that may arise. With a vibrant community of prospective students and student alumni who are also former recipients of various scholarships, you are sure to get all the support and guidance that you need.

The group feature on the platform also gives you the chance to connect and interact with like-minded individuals who are also pursuing academic programs in different parts of the world.

Regular updates are provided on graduate assistantship positions, scholarship opportunities, application fee waivers, and more. Tailored conversations that are catered to particular needs, including visa applications, are also covered.  Also, you can pioneer the creation of any group provided that you have a problem you're looking to address and a means to solve it. Join UnykEd, your all-in-one community for aspiring students, and let's lead you to your dream university with no money headaches after graduation.