Paying For College
FAFSA
The Free Application for Financial Aid, better known as FAFSA, is an online form that colleges and universities use this form to determine your eligibility for federal, state, and college-sponsored financial aid, including grants, educational loans, and work-study programs.
Even though the FAFSA application is for federal aid, you have to fill it out to receive state and college-sponsored financial aid as well. If you're hoping for any government or school financial aid for college, you should file a FAFSA. Check out The How to Guide for FAFSA for more information.
Types of Financial Aid
Grants
Grants are financial aid that doesn't have to be repaid (unless, for example, you withdraw from school and owe a refund). Most grants are need based. This means that they are usually awarded based on your or your family’s financial situation.The federal government is the largest source of need-based gift aid, primarily in the form of the Pell Grant. State governments often fund grants and scholarships for residents attending college in their state.
Many colleges offer grants to their students. These may be merit based or need based, or a combination of the two.
Work Study
Federal Work-Study provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses. The program encourages community service work and work related to the student’s course of study.
Scholarships
Most scholarships are merit based. This means that they are awarded to students with certain qualities, such as proven academic or athletic ability. Many scholarships have rules that you have to follow to continue receiving aid. For example, you might have to maintain a certain GPA.
Many colleges offer scholarships to their students. These may be merit based or need based, or a combination of the two. Colleges may have stricter requirements for keeping a scholarship than do other sources of scholarships.
Many companies, foundations, community organizations and clubs sponsor grants or scholarships. Scholarships from these private organizations are called outside, or private, scholarships.
Loans
If you apply for financial aid, you may be offered loans as part of your school’s financial aid offer. A loan is money you borrow and must pay back with interest.
If you decide to take out a loan, make sure you understand who is making the loan and the terms and conditions of the loan. Student loans can come from the federal government, from private sources such as a bank or financial institution, or from other organizations. Loans made by the federal government, called federal student loans, usually have more benefits than loans from banks or other private sources. Learn more about the differences between federal and private loans.
Federal Student Aid and Homeless Youth
If you are homeless or at risk of becoming homeless, you can qualify for financial aid and should complete the FAFSA (Free Application for Federal Student Aid).
A student is considered homeless if he or she lacks fixed, regular and adequate housing. This includes students living in shelters, motels, cars or parks, or who are temporarily living with other people because they have nowhere else to go. Students are also considered homeless if they are fleeing an abusive parent. For more information visit The Federal Student Aid and Homeless Youth Q&A.