Financial aid is money to help students pay for higher education expenses such as tuition, fees, room and board, books, and supplies. It can come from various sources, including the federal government, state governments, colleges, and private organizations. The cost of higher education is the responsibility of the family and can be costly. Financial aid is meant to supplement what a family can contribute. There is a wide range of tuition costs and careful research can help significantly reduce the price that you might pay for your college education.
To make college more affordable.
To ensure students of all income levels can access higher education.
To supplement family resources when the cost of college exceeds what a family can pay.
U.S. citizens or eligible non-citizens
Students enrolled or accepted for enrollment in eligible programs
Must maintain satisfactory academic progress (for ongoing aid)
Students from middle- or higher-income families may qualify for some form of aid, including low-interest loans or merit scholarships.
Based on achievements, not financial need.
Awarded for academic excellence, athletic skill, artistic talent, or leadership.
Often comes from colleges, private organizations, or state programs.
Example: A student with a high GPA and strong SAT scores might receive a scholarship regardless of family income.
Need-Based Aid
Determined by the family's financial situation.
Most federal, state, and institutional aid is need-based.
Based on information provided in the FAFSA or CSS Profile.
Example: A student from a low-income family may qualify for federal Pell Grants or subsidized loans.
Grants
Scholarships
Work Study
Student Loans
Need-based aid
Merit or need-based aid
On Campus job
Borrowed money
❌ No
❌ No
✅ You earn it
✅ Yes + interest
Free money that doesn’t need to be repaid.
Based on financial need.
Examples:
Federal Pell Grant
Federal Supplemental Educational Opportunity Grant (FSEOG)
State grants
Can be need-based or merit-based.
Offered by colleges, nonprofits, foundations, and private companies.
Searchable through websites like Fastweb or Scholarships.com.
Part-time jobs for students with financial need.
Funded by the federal government and administered by schools.
Must be repaid, often with interest.
Federal loans are generally preferable to private loans.
Direct Subsidized Loans (need-based; no interest while in school)
Direct Unsubsidized Loans (not based on need; interest accrues immediately)
Parent PLUS Loans
Private loans are available but often less flexible and more costly
Required for federal and most state and institutional aid.
Opens October 1 each year
Determines eligibility for:
Pell Grants
Federal student loans
Work-study
Used by many private colleges to award institutional aid.
Check the CSS Profile to see which colleges require this
More detailed than the FAFSA.
Fee required to send to each school (waivers available).
Found on each college’s website.
Estimates what you'll actually pay out-of-pocket after financial aid.
Helps families plan by showing the difference between the sticker price and the net price.
Requires input like income, assets, GPA, and test scores.
Apply early. Aid is often first-come, first-served.
Check college deadlines. Schools may have their own earlier deadlines for aid.
Look for outside scholarships year-round.
Compare award letters from each school—look beyond just the total amount to understand what’s a grant vs. loan.
Renew FAFSA yearly for continuing aid.