<h2 class="text-align-justify">FINANCIAL SUPPORT</h2><p class="text-align-justify"><strong>Financial support </strong>aims to alleviate at least part of the financial burden of higher education, including students’ study costs (fees, equipment, books, etc.) and living expenses (accommodation, transport, food, etc.).</p><p class="text-align-justify">The main public financial support mechanisms are:</p><ul><li><p class="text-align-justify"><strong>direct financial support</strong> to students through <strong>grants</strong> and <strong>loans</strong></p></li><li><p class="text-align-justify"><strong>indirect financial support</strong> through<strong> allowances</strong> or <strong>tax incentives</strong> to students and/or their parents</p></li></ul><p class="text-align-justify"><strong>Direct financial support</strong> implies that students receive financial support to cover their expenses directly. <strong>Indirect financial support</strong> may benefit students but is directed via other channels. </p><p class="text-align-justify"><strong>Grants</strong> are the most common form of student support in Europe, and the most significant in supporting students, as the money awarded does not have to be repaid. <strong>Loans</strong> have to be repaid, but in publicly subsidised schemes governments bear a part of the costs, for example through applying reduced interest rates. </p><p class="text-align-justify">The main forms of indirect financial support are<strong> allowances </strong>that in some systems may be paid to students' families, or<strong> tax incentives.</strong></p><p class="text-align-justify"> </p><div><hr><div><p class="MsoFootnoteText"> </p></div></div>
Public grants are non-reimbursable financial aid from the public budget. Three categories of grant can be distinguished in European higher education systems:
Universal grants: available to all students
Need-based grants: available to students assessed to have the greatest financial need
Merit-based grants: awarded to students on the basis of academic performance
In some systems these forms of grants overlap. For example, universal grants may exist but those with greater financial need receive more money.
Other criteria for grants may also exist, such as awarding additional support to students in certainfields of study. Different types of grants often co-exist within a single higher education system.
