Bettye Davis East High College/Career Resource Center
What is Financial Aid?
"Financial Aid" is a broad term that describes the various types of resources available to assist a student with his or her educational expenses. There are four primary categories into which financial aid programs may be grouped: scholarships, grants, work-study, and loans. All financial aid starts by filling out the Free Application for Federal Student Aid (FAFSA).
Scholarships
Scholarships do not need to be repaid and are typically awarded on an annual basis. Scholarships may be awarded on a number of criteria, including: financial need, academic achievement, extracurricular activities, career aspirations, athletic or musical talent, and much more.
Grants
Grants are usually awarded based on financial need. Grants are free and do not need to be repaid. Federal and state programs have the largest amount of resources available for grants. Institutions and private sources may also award grants on an annual basis.
Note: The Alaska Education Grant is need based and available to Alaska residents attending in-state for college. It is best to annually submit your FAFSA early (October) to be considered for this grant.
Work-Study
Work-Study funds are usually awarded on the basis of financial need. This program provides students with part-time jobs either on or off campus to enable the student to earn funds to help pay educational and living expenses. Work-Study earnings are taxable but, because they are excluded on the FAFSA, they do not affect your eligibility for need-based aid.
Loans
Educational loans are financial aid that must be repaid with interest. Funds come from federal, state, and private sources, although not all loans are created equal. With the exception of the Parent Loan for Undergraduate Students, federal loans typically have the lowest fixed interest rates with no credit history required and the most favorable repayment terms. Federal loans are also eligible for a number of forgiveness and repayment plans that can make repayment easier for student borrowers. Most non-federal loans offer a very limited number of repayment plans.