What is Financial Aid? 

There are four different types of Financial Aid. To qualify for financial aid from the federal or state government as well as many colleges students will be required to complete the Free Application for Federal Student Aid (FAFSA). 

Scholarships

• 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. 

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.

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. 

Work-Study Programs

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