Financial aid programs provide support for students to help meet the costs of obtaining a college education. Funding for such programs is provided by the federal and state governments, the individual colleges and universities, and a variety of other public and private sources.
Financial aid is split up into two categories based on the reason the money is awarded:
- Achievement-based aid is awarded to students who have a special characteristic, skill, talent, or ability. Typically achievement-based aid is in the form of scholarships.
- Need-based aid is provided to students who demonstrate financial need. Most financial aid, particularly public-funded aid, is awarded on the basis of financial need determined through the application process and in accordance with a prescribed federal formula.
4 Basic Types of Financial Aid Programs Available
GRANTS: Federal or state gift assistance with no obligation for work or repayment
LOANS: Providing funds now but with a future repayment obligation
SCHOLARSHIPS: Gift assistance with no obligation for work or repayment
WORK-STUDY: Part-time work while attending the institution
Most often, financial aid will come to the student in the form of a package consisting of a combination of the different types of aid available. The combination of aid offered depends on the timeliness with which the application process is completed by a student and parent, a student's financial eligibility, the availability of funds, and a student's year in school.
Read more about financial aid and how it works throughout the webpages. Feel free to contact us should you have questions or need help with your financial aid concerns or needs.