What Financial Aid Is: borrowed, given, or earned money for students to pay for college expenses. Financial aid includes grants, scholarships, loans, and employment.

Sources of Financial Aid:

• Federal Government

• State Government

• Institutions/Colleges

• Private Sources

Types of Financial Aid:

• Grants: Free money students do not have to pay back; based on financial need.

  • Cal Grant: a California-specific financial aid allocation that does not need to be paid back

  • Pell Grants: Free money from the federal government awarded to students with exceptional financial need; all students who qualify are awarded (max=$6345/year)

  • FSEOG: Free money from the federal government awarded by colleges to students with exceptional financial need; funds are limited and not all schools participate (max=$4000/year)

  • Other Grants: Other free money including the Iraq and Afghanistan Service Grant, TEACH Grant, Academic Competitiveness Grant, and National SMART Grants.

• Scholarships: Free money students do not have to pay back; based on different qualifications such as background, accomplishments, and experiences.

• Loans: Borrowed money; must be paid back with interest charged.

• Work-Study: Part-time jobs awarded to students with financial need.

The Cost of College Attendance:

• Direct costs: What students pay directly to their college (tuition, fees, room, and board)

• Indirect costs: Personal student expenses (books, transportation, personal care items, etc.)

Families should have examples of tuition at different colleges, including private, state, and junior colleges, the different institutional scholarships available (e.g., WUE and merit-based scholarships), and resident vs. out-of-state tuition. For example, families should know how much financial aid students receive on average at different colleges. Did you know that at Yale, where tuition is $57,700, more than 53% of undergrads are awarded a need-based Yale scholarship with the average grant being over $55,100?

Important Tip: Students should apply for their local scholarships! There is less competition at the local level and sometimes hardly any competition at all with some scholarships! The bigger national scholarships (Gates Millennium, Coca-Cola, the SMART Scholarship, etc.) are worth a shot too, but they are very competitive.

Applying for Financial Aid: Once students know the basics of financial aid and the college expenses they should expect, it’s important to explain what the FAFSA is and how to apply for financial aid. THIS video gives a helpful overview and here are some tips from the official FAFSA website. There is also information about the CSS Profile. Click HERE for an overview.

A Google search can also provide you some great lists to share such as these (click below for the attached links):

States with Free Community College

Best Value Schools

Colleges with Full-Ride Scholarships

Students to start looking for scholarships early and keep track of scholarships they are interested in by using a spreadsheet or Google Doc. HERE is a scholarship search tool from the U.S. Department of Labor, but there are also many other scholarship websites.

Want to help your students really stand out? You know, like being able to say they started their own non-profit, small business, Youtube channel, or charity? Have them do Genius Hour Projects! Learn more HERE.