Financial aid is money to help pay for college or career school. The four types of financial aid available include grants, work-study, loans and scholarships.

• Grants - grants are called gift aid because they do not have to be paid back. Grants come from federal and state governments and from colleges. Most grants are need based, which means they are usually given based on your or your family’s financial circumstances.

• Work-Study Programs - the Federal Work-Study Program offers paid part-time jobs to help students pay for part of their college cost.

• Loans - borrowing money from a bank, government or lending company is called taking out a loan. A loan must be paid back with an extra charge called interest. The federal government offers low-interest loans to students with financial need. Other lenders charge more interest.  

• Scholarships are a gift aid. Scholarships come from governments, colleges and private organizations. They may be awarded for academic or athletic ability, interest in a certain subject, or volunteer work, for example. Some scholarships are given based on membership in an ethnic or religious group. Companies may also give scholarships to children of employees. Be sure to check out the scholarships page in our drop down menu. 

Having the "how to pay for college" conversation is important. Sallie Mae has some great tools to help you start the conversation and provide you with the information you need to figure it out. 

Don’t Rule Out “Expensive” Colleges 

Keep in mind that a college that charges a lot for tuition might offer you generous financial aid. It might even be more affordable than colleges that charge lower tuition. So think about net price, not published price — and don’t be afraid to apply to colleges you think you can’t afford. Once you hear from the colleges you’ve applied to, compare your financial aid offers to see which options are best for you. 

Net Price

Net price is the real price that a student pays to go to a college. It’s the published price of the college minus the gift aid that the student receives. The net price of a college is often much lower than its published price.

Most colleges now offer a tool on their websites called a net price calculator. This online tool gives you an estimate of the actual price you would pay to go to a certain college, based on information you enter about your finances.

Your net price will be different for every college, so it’s a good idea to use each college’s net price calculator. Visit a college’s profile in College Search to access its net price calculator.