Financial aid to meet a student's educational expenses is available in four basic categories: scholarships, grants, work-study and education loans. Most students finance their education through a package combining aid from several categories. Although it is possible to try for a full scholarship, it is beneficial to keep your options open to all types of aid.
Scholarships are awarded based on special ability, academic achievement, religious affiliation, ethnic background or special interest and they don't have to be repaid. These are privately funded by colleges, churches, memorial funds, etc. When obtaining information about scholarships you should remain aware of scams.
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Grants are awarded based on need and, like scholarships, they don't have to be repaid. Grants are offered by your state, the federal government and different institutions, such as the college your teen will be attending. There are three federal grants: the Federal Pell Grant, Federal Supplemental Educational Opportunity Grant and the Academic Competitiveness Grant. In order for your child to receive this type of aid, he/she will need to apply every year. Deadline dates, resources and more information about federal grants can be found on the U.S. Department of Education FAFSA site.
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Work-study is a federal program offering part-time jobs both on and off campus. The amount that can be earned is based on several factors, including need, the ability to do the job, other aid received and availability of school funds. Work-study funds don't have to be repaid because work is traded for hourly wages. Although this works for many students, the student does have to take into account the amount of time working can take away from his/her college workload.
Education loans are funds borrowed from a financial institution or federal or state government and must be repaid. There are three main types of college education loans: the Federal Perkins Loan, Federal Family Education Loans/Federal Direct Loans and supplemental loans made by U.S. banks.
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