TYPES OF AID
WHAT ARE THE TYPES OF FINANCIAL AID AVAILABLE?
The term "financial aid" can mean a lot of things. It is very important to understand differences in the general types of aid a student can receive. Grants and Scholarships are the best type of aid. Grants and scholarships are essentially free money; these never have to be repaid. They can be awarded to a student from the college they will attend (often through what is known as tuition discounting), from an outside organization, or from the government.
We are all familiar with Student Loans, which will eventually have to be repaid. Different types of student loans carry different terms for the borrower. In short, some kinds of loans (federal) are much safer than others (private).
Work Study is a third and much smaller source of financial aid. Work Study programs typically entail a student working a federally funded part time job on campus. Paychecks go directly to the student to help meet college expenses.
Click here for detailed descriptions of the Federal Student Aid programs.