Lesson #5: Apply for Financial Aid

What do you know about financial aid? What does FAFSA stand for? What’s the difference between a loan, grant, and scholarship?

The cost of college includes tuition in addition to books, school supplies, transportation, and other expenses. The cost of college can seem overwhelming but colleges, a variety of organizations, and the government provide financial aid to help students who get into college pay for their ability to complete their degrees. All students are not expected to pay 100% of their total cost of college. There are many ways you can pay for college!

Merit-Based Aid vs. Need-Based Aid

Merit-Based Aid

This type of financial aid is based on your achievements and academic performance. The most common form of merit-based aid is scholarships that are awarded through colleges or organizations.

A scholarship is an award provided to help pay for your education. It is provided on the basis of academic or other achievements.

If you would like to look for scholarships, complete the “Apply for Financial Aid Worksheet.” 

Need-Based Aid

This form of financial aid solely takes into account your and your family’s ability to pay for college. You can receive need-based financial aid through private and federal (government) student loans and grants.

Need-based financial aid comes in three main forms, and having a clear understanding of their differences is essential to make sure your student is applying for the aid that best suits their circumstances.

Loans

Federal student loans are a common form of need-based aid to help you make up the difference left after any merit-based aid is applied. These loans require repayment beginning after you are no longer enrolled in college or drop below half-time enrollment in college.

Work-Study

The Federal work-study program offers part-time employment to students who demonstrate a financial need. This may allow you to earn money that can be used to pay for educational expenses while working in a field that supports your studies.

Grants

Unlike student loans, grants are a need-based aid that does not need to be repaid upon graduation. There are several Federal and state (or government) grants that may be available to you, and filling out the FAFSA is the first step to figuring out which ones are available.

FAFSA stands for Free Application for Federal Student Aid. It is the form you will need to fill out in order to get any financial aid from the federal government to help pay for college.