One type of financial aid is a loan.  Student loans are financial aid given to a student by a federal or private lender that is specifically intended for education costs(1).  While they can be helpful, a downside is that they have to be paid back.  This is a main factor of the cause and effect of financial situations in college.  While the cause is actually receiving the loan, the remote effects are:  being able to pay for school right away, and getting a slower start on your future savings because you have to repay the loan.  While loans can be beneficial, they hurt the student afterward, however, because they have to be paid back eventually and are only a temporary fix to financial situations(1).this should be #2 - even if it is exactly the same as the previous. It is the second note.

      On the other hand, a scholarship is a better and more valuable resource for students to gain financial aid in college. The wonderful thing about a scholarship is that you don’t have to pay it back unlike having the burden of loans. This can be very helpful to especially athletes that may not have the financial backing to get them through college. This is where a scholarship comes in. A coach may grant a scholarship to a student he feels will be a beneficial addition to the team. “Some scholarship programs award funds to students in a particular major; others may award money based on athletic ability, scholastic ability, religious affiliation, race (of the student or parent), or social activities.”(2) There are many schools throughout the country that can provide college scholarships. "A good example is the California State University. It offers scholarship grants for both graduate and undergraduate studies amounting to $500 or more, Meanwhile, in Iowa State University, you may also receive as much as $15,000 worth of college funds. University of South Alabama and South Carolina also offers statistics scholarship for their outstanding students with the potential for academic excellence." this is out of order. (4)