Financial Aid is money from the government and college that helps you pay for college.

After you apply for financial aid, the government and college calculate how much aid your family can afford to pay (this can be $0 up to the full cost of attending). Then they award a financial aid package to cover the rest.

When searching for colleges, it's helpful to understand how much your family could pay after you get financial aid. This Tuition Tracker tool allows you to search for a college, enter in your family's household income (it doesn't have to be exact), and get an estimated out-of-pocket cost. This tool also shows the average graduation and retention rates for different demographic groups, which can be helpful in understanding the college's value. Because of financial aid, you have to take a school's sticker price with a grain of salt!

Learn more by reviewing the Financial Aid Basics guide below from the MN Office of Higher Education.

If you're a US citizen, Permanent Resident (you have a green card), or eligible refugee, you'll apply for financial aid through the Free Application for Federal Student Aid (FAFSA). If you are not a US citizen, you'll complete the MN Dream Act. Some colleges (typically the more expensive private colleges) require an additional form called the CSS Profile. Check with your college to understand which forms are required.

The FAFSA and MN Dream Act are fairly similar, and they will ask about your household and family income. In order to apply for financial aid, you'll need:

• An FSAID account (only needed for FAFSA)

• Your and your parent(s) Social Security Number or Alien Registration Number (only needed for FAFSA -- parents are not required to have a social security number to complete FAFSA)

• Your and your parent(s) federal income tax returns, W-2s, and other records of money earned. (Note: You may be able to transfer your federal tax return information into your FAFSA using the IRS Data Retrieval Tool.)

• Bank statements and records of investments (if applicable)

• Records of untaxed income (if applicable)

When you apply for financial aid, you have to dig into some pretty personal and detailed financial information. Reach out to your Career Pathway Center Coordinator to get help!

Grants are "free money" that you don't have to pay back!

A grant can come from the federal government (e.g., the Pell Grant), the state (e.g., the MN State Grant), or the college itself. Most grants are based on your household income, and usually there is no additional application outside the FAFSA or MN Dream Act (find more information on these applications below!).

Like grants, scholarships are "free money" that you don't have to pay back. Unlike grants, many scholarships are based on additional factors like your academic ability, writing, creativity, athleticism, and more. These are the different types of scholarships you're likely to see:

Scholarships from the College

• Merit Scholarships: Many colleges offer scholarships in academic, the arts, or community service. Sometimes there is an additional application required for these scholarships, and other times you are automatically considered for them based on your application. Be sure to check with your college to learn more about scholarship criteria!

• Identity Based Scholarships: In addition to merit scholarships, some colleges (particularly colleges where the study body is predominately white) offer scholarships to students from different races or are the first in their family to attend college. Occasionally these scholarships are tied to a specific major (e.g., National Association of Black Journalists Scholarships), but other times they are open to all majors.

• Athletic Scholarships: Division I and II colleges offer athletic scholarships (division III does not). Students receive these scholarships by going through an official recruitment process, so if you're interested, get in touch with the college's athletic department. Usually you have to keep playing your sport to maintain your scholarship, so keep that in mind if you're interested in playing DI or DII.

Outside Scholarships

There are a number of outside scholarships that have deadlines throughout the year. These scholarships range in dollar amounts from as little as $100 to up to $60,000 or more! They are awarded based on academics, writing, race or ethnicity, hobbies, community service, and much more. Check in with your Career Pathway Coordinator regularly to hear about new opportunities! You can find a list of outside scholarships in your Xello account under Local Scholarships.

Colleges accept outside scholarships differently, so be sure to check in with your college's financial aid offer to learn how it ties into your financial aid package.

Federal "work study" is an amount of money in your financial aid package (usually it's about $2,000) that you pay back by working an on-campus job. It's important to know that the money you earn from this job will go to your college costs. If you don't earn the full amount of your work study, you'll have to pay this money out of pocket.

While work study jobs don't allow you to directly earn money, they are a great way to build your resume and connections while in college. There are a lot of different types of work study jobs including: campus tour guide, academic tutoring, working at a residence hall or cafeteria, and more. Be sure to ask your college how to find an on-campus job if you're considering work study.

You do have to pay loans back!

Loans come from the government or a private bank, and usually they have an "interest rate," which means the amount you have to pay back grows steadily over time. You don't have to take out loans, but they can help your family afford college. It's really important to understand exactly how much you'll have to pay back when you graduate college.

Thinking about loans can be overwhelming, so here are a few things to pay attention to:

• How much am I comfortable taking out? Unfortunately, sometimes financial aid packages can be "too good to be true." Make sure you understand exactly how much of your financial aid package is money you'll have to pay back. Talk with your family and your Career Pathway Coordinator to help make an informed decision.

• How much is the interest rate? In general, loans from the federal government tend to have lower interest rates. This is important because the higher the interest rate, the more you'll have to pay off in the long run.

• Am I taking out this loan or are my parents? Most of the time, when you take out a loan, it's in your name. This means that you will have to pay back the loan after graduation. However, there are also parent loans (from the government, these are called Parent PLUS loans). Before taking out this type of loan, have an honest conversation with your parents about how much money they'd be comfortable taking out (and repaying).

• Where is this loan coming from, and what are the payment options? In general, a loan from the federal government should be your first option when taking out a loan. These loans tend to have lower interest rates and more repayment options.

You can learn more about loans by reviewing the Loan Guide from the MN Office of Higher Education.