Types of Financial Aid

Understanding the different types of financial aid is crucial for navigating college costs. From grants that don’t need to be repaid to loans and work-study options, knowing your choices can help ease the financial burden of higher education.

1. Federal Pell Grants

   • Need-based grants awarded to undergraduate students who demonstrate financial need.
   • Do not require repayment, making them a form of gift aid.
   • Award amounts vary based on financial need, cost of attendance, and enrollment status.

2. Federal Direct Subsidized Loans

   • Loans available to undergraduate students with demonstrated financial need.
   • The government pays the interest while the student is in school at least half-time.
   • Repayment begins six months after graduation or dropping below half-time enrollment.

3. Federal Direct Unsubsidized Loans

   • Loans available to both undergraduate and graduate students regardless of financial need.
   • Interest accrues while the student is in school, and the borrower is responsible for all interest.
   • Repayment begins six months after graduation or dropping below half-time enrollment.

4. Federal Work-Study Program

   • Provides part-time job opportunities for students with financial need to help pay for education expenses.
   • Jobs can be on or off-campus and are often related to the student’s field of study.
   • Earnings are paid directly to the student, helping to cover living expenses.

5. Federal Supplemental Educational Opportunity Grant (FSEOG)

   • Need-based grant for undergraduate students with exceptional financial need.
   • Schools administer the funds, and not all schools participate in the program.
   • Does not require repayment, making it a form of gift aid.

6. State Grants

   • Financial aid provided by state governments to residents attending college.
   • Eligibility and award amounts vary by state and may be based on financial need or academic merit.
   • Often requires completion of the FAFSA and state-specific applications.

7. Institutional Scholarships

   • Scholarships offered by colleges and universities to attract and support students.
   • Can be based on academic merit, financial need, or specific talents and achievements.
   • May have specific eligibility criteria and application processes.

8. Private Scholarships

   • Scholarships funded by private organizations, businesses, or individuals.
   • Vary widely in eligibility requirements, award amounts, and application processes.
   • Can be based on academic achievement, community service, or specific demographics.

9. Merit-Based Aid

   • Financial aid awarded based on a student's academic, artistic, or athletic achievements.
   • Does not consider financial need; often includes scholarships and awards.
   • Can significantly reduce the cost of attendance for high-achieving students.

10. Need-Based Aid

    • Financial aid awarded based on a student's financial situation and need for assistance.
    • Includes grants, loans, and work-study programs.
    • Requires the completion of the FAFSA and may involve additional documentation to determine eligibility.