What Are the Different Types of Financial Assistance?

Financial aid programs and private grants commonly provide financial assistance to certain students who seek secondary education. A wide range of aid is provided by social service programs, including assistance for food, housing, and medical needs. Child support may be paid to custodial parents and alimony to the financially disadvantaged partners in cases of divorce. Workers compensation is an insurance program that provides financial assistance to those who have medical needs or lost wages due to work related conditions.

The type of financial assistance that is available generally depends on the reason that monetary aid is needed and the jurisdiction that a person lives in. Students of secondary education, for example, may have several options, including the federal government. In some nations, funds are allotted for individuals who want to continue their education but who have limited income.

Students may obtain private loans to finance their studies. Unlike the loans that are provided for other reasons, the repayment of student loans may not begin until after a person completes her education. There are also a lot of grants for students. In many cases, these are funds provided by private sources, and they do not need to be repaid. Some individuals also have access to employer provided reimbursement programs, which repay workers for their educational pursuits if they meet certain standards.

A wide range of financial assistance is available through social service programs. In many places, for example, there are monetary food aid programs. To ensure that all individuals have access to adequate nutrition, governments or non-profit organizations may distribute aid to purchase food. The amount received is commonly based upon income and the number of members in a family.

Through social service programs, financial assistance is made available for housing in some places. Individuals who cannot afford to pay the costs of renting or purchasing a residence are given funds that either partially or fully cover the expense. Once these individuals are in their homes, they may be eligible to apply for heating and cooling assistance. These are funds issued to cover the costs of items such as firewood, fuel and electricity.

Individuals who require assistance for these necessities may not be able to provide proper financial support for their children. Social welfare programs may allot a certain amount of money per month per child to help ensure adequate care. There may also be similar programs that compensate foster parents for taking care of other people's children. Medical assistance is a further form of social welfare financial assistance, which is relied upon by a wide range of people. These funds may be provided to people with higher incomes than the benefits disbursed through other programs.

Alimony is financial assistance for the disadvantaged party of a divorce. These funds may be privately negotiated or they may be court-ordered. The same is true with child support, which are funds that a non-custodial parent provides to the custodial parent when she is primarily responsible for caring for their child.

In some jurisdictions, there are programs that provide assistance to injured workers. This type of workers' compensation is made available through insurance companies that are paid by the employers. When an employee gets hurt or develops a disease that is a result of her job, she can submit a claim to the insurance company and receive financial assistance for her medical care and to replace income lost when she is unable to work.