Kinds Of Financial Aid Available To College Students
June 7
Most incoming college freshmen have never had any experience with financial aid and therefore do not know much about it. It might seem somewhat complicated, but it is actual quite simple. There are five basic categories of aid available to college students. Which of these a student qualifies for depends upon his or her financial situation, as well as how much money will be contributed by parents.
A common type of aid is the student loan. Many students qualify for this. They will collect interest and do have to be paid back. There are two sub-types, including those award from the government and those that come from private funding sources. Government loans tend to be lower interest and are awarded automatically after a student fills out the FAFSA.
Private loans mostly come from banks and other financial institutions. These are not applied for through the FAFSA. They must be applied for directly from the loan institution. They generally have higher interest rates than government loans.
Another type of tuition aid is scholarships. This is money that is put toward a student’s college expenses and does not have to be paid back. It is usually awarded for some kind of achievement or special circumstance. Many have to be applied for, but some types do not.
Another type of aid that does not need to be paid back is grants. Independent grants sometimes must be applied for and won. Government grants, however, are automatically awarded to qualifying students who fill out the FAFSA.
The last category is the work study. Work study money is awarded from the FAFSA and comes from a job that the student must work at. Work study jobs are only open to students who qualify for this program, not to students who have not gotten this award.
When financial aid is broken down like this, it becomes much less confusing. It is only available in these five types. Most students unable to afford college expenses on their own will be eligible for at least one, if not more than one, of these kinds of aid.
Sometimes, financial aid is necessary to afford the tuition and fees for a college education. For additional details about the opportunities and the application procedure, check out the website at http://www.finaidfacts.org/ now
