Getting Financial Aid Part 1

Money matters

Going to college is expensive, but you do have some financial options. Generally, community colleges are the least expensive, followed by four-year public colleges, with the most expensive being the four-year private universities. Don’t rule out an expensive college of your choice until you have researched the array of financial aid options available to you. Most people will create their own financial aid packages that include dollars that their family can contribute, personal savings, awarded scholarships and federal loans.

What is financial aid?

Financial aid is monetary assistance that allows individuals to pay the costs of attending college when their own resources are not enough. Some aid, such as scholarships, does not need to be repaid, while other assistance, like loans, does need to be repaid.

There are four types of financial aid (Heath Resource Center, 2007):

1. Grants – Aid that generally does not have to be repaid.
2. Loans – Money borrowed to cover school costs, which must be repaid, usually with interest, over a specified period of time, typically after the student has graduated or left school. The interest on these loans is often reduced from general public rates.
3. Work-study – Employment that enables a student to earn money toward a portion of school costs during or between periods of enrollment. These usually on-campus positions are supplemented by the federal government. Students are awarded work-study positions through the Federal Student Aid application. However, a student must interview and be hired for each position that is worked.
4. Scholarships – Gifts and awards based on a student’s academic achievement, background or other criteria. Sometimes scholarships are one time only; others require the student to maintain a specific GPA to be entitled for renewal.