The dream of a college education is within reach of every student. However, realizing that dream requires planning, preparation, and for most families, a basic knowledge of financial aid.
So, what is Financial Aid? Financial aid refers to the wide variety of programs that help students and families pay for college or graduate school.
What are the basic types of Financial Aid? Financial aid is available in three forms: grants and scholarships, which do not have to be repaid; loans, which have to be repaid; and work-study, which provides aid in exchange for work, usually in the form of campus-based employment.
Where does Financial Aid come from? Three major sources provide the bulk of student financial aid: the federal government, state governments, and colleges and universities. The federal government is the largest single provider, underwriting 69 percent of all financial aid available, mostly through loans. Private sources of aid, such as scholarships from companies and loans from nongovernmental organizations, also are available.
How is Financial Aid awarded? Most student aid — almost all of which is provided by the federal government — is awarded to students based on their or their family’s ability to pay. Other aid is merit-based; students receive it on the basis of their individual achievement and not entirely according to family need. Remember timing is everything, so get the applications in on time!
See the On-Line Financial Aid Resources box for helpful links to assist you in answering your students’ questions about financial aid. Remember, when in doubt about financial aid, call or visit your local community college or university for assistance. Don’t be shy — it’s your student’s future!
