Scholarships and Financial Aid

Scholarships, grants, and loans are some of the many options available to help you pay for your college education. But figuring out how to access and combine them can be overwhelming. Below is a breakdown of the most common types of financial aid. 

What is a scholarship?

Scholarships are usually awarded to students with certain qualities. Common scholarship types are:

• Merit-based – Awarded to students based on academic achievement.

• Student-specific – Given to students from a specific community or group, such as Native Americans, women, the LGBT community, continuing-education students, or international students.

• Career-specific – For students who pursue a particular course of study, often in high-demand professions such as education or nursing.

• Athletic – For students who participate in a college or university’s athletic program.

• Need-based – Easily confused with grants, these scholarships are commonly available from individual schools to students who meet certain criteria.

There are other types of scholarships. Some corporations offer “branded scholarships,” which are available either through an application process or by winning a competition. Businesses and labor unions sometimes offer scholarships to their employees or members or to their kids. Your religious community or civic group may do this too.

Keep in mind, continuing to receive your scholarship may require maintaining a certain GPA, staying involved in the school’s athletic program or meeting other requirements.

What is a grant?

Grants are often awarded based on financial need, as determined through the Free Application for Federal Student Aid (FAFSA) or other documents. Most are government-funded, like these federal grants:

• Federal Pell Grants

• Federal Supplemental Education Opportunity Grants (FSEOG)

• Teacher Education Assistance for College and Higher Education (TEACH) Grants

Eligibility requirements vary for each grant. 

What is a loan?

A loan is money that you borrow with the expectation that you will pay it back, within a deadline laid out by your lender.

Students can borrow money through federal student loans, which are issued by the government, or private student loans, which are issued by non-government entitles like banks and credit unions. To qualify for a private student loan, you’ll need to demonstrate your ability to pay the loan back, usually with a cosigner.

What types of federal student loans are available?

There are four types of Direct Loans available:

• Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school.

• Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but eligibility is not based on financial need.

• Direct PLUS Loans are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. Eligibility is not based on financial need, but a credit check is required. Borrowers who have an adverse credit history must meet additional requirements to qualify.

• Direct Consolidation Loans allow you to combine all of your eligible federal student loans into a single loan with a single loan servicer.

*Visit Federal Student Aid/Loans to learn more information about federal student loans.