Financial Aid and Grants

Overview
Every year, organizations award billions of dollars in scholarships and grants to students. According to the College Board, scholarships are usually based on specific qualities (e.g., merit or ability), while grants are usually based on financial need. Government organizations, colleges, and private organizations are common sources of scholarships and grants.

Free Application for Federal Student Aid (FAFSA)

  • The Office of Federal Student Aid (OFSA) uses the information reported on the FAFSA to determine qualifications for grants, loans and work-study programs for students attending colleges, universities and/or career schools.
  • States and postsecondary institutions use information reported on the FAFSA to award scholarships.
  • FAFSA completion leads to a Student Aid Report (SAR), which lists the Expected Family Contribution (EFC). The EFC is the financial amount a student/family should be able to provide toward the student's cost of education.

Government Financial Aid

Work-study

A work program to earn money and help you pay for school. It provides part-time employment while you are enrolled in school.

  • Available to undergraduate, graduate, and professional students with financial need.
  • Available to full-time or part-time students.
  • Administered by schools participating in the Federal Work-Study Program. Check with your school's financial aid office to find out if your school participates.

Grants

Grants are often called "gift aid" because they are free money—financial aid that doesn't have to be repaid. Grants are often need-based, while scholarships are usually merit-based.

Loans

Generally, there are two types of student loans: federal and private.

  • Federal student loans and federal parent loans: These loans are funded by the federal government.

    • Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school.
    • Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but eligibility is not based on financial need.
    • Direct PLUS Loans are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. Eligibility is not based on financial need, but a credit check is required. Borrowers who have an adverse credit history must meet additional requirements to qualify.
    • Direct Consolidation Loans allow you to combine all of your eligible federal student loans into a single loan with a single loan servicer.

  • Private student loans: These loans are non-federal loans, made by a lender such as a bank, credit union, state agency or school.

Other Sources (State Aid, College Aid, Nonprofit/Private Orgs)

  • Aid From Your State Government - Even if you're not eligible for federal aid, you might be eligible for financial aid from your state. Many States have special grants or Student Loan Repayment Programs that will forgive loans based upon service in designated areas within their respective state.
  • Aid from Your College or Career School - Many schools offer financial aid from their own funds. Find out what might be available to you
  • Aid from a Nonprofit or Private Organization - Many organizations offer scholarships or grants to help students pay for college or career school. This free money can make a real difference in how affordable your education is.

What Are Some Tips and Best Practices?

  • Start your search early
  • Use a scholarship search engine (e.g., College Board Scholarship Search)
  • Prepare and organize your information
  • Apply for ALL the scholarships you are eligible for
  • Follow the instructions and complete forms in their entirety
  • Track your applications
  • Be cautious and avoid scams
  • Ask your school, professional associations, and civic organizations about opportunities

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