Grants
A grant is considered gift aid (i.e., money which does not need to be repaid). Grants are usually given to students based solely on a demonstration of financial need. For federal grants, students must submit a Free Application for Federal Student Aid (FAFSA) each academic year. For state grants, student must submit a New York State Tuition Assistance Program (TAP) application each year.
Scholarships
Scholarships are gift aid(i.e.,money which does not need to be repaid). Scholarships are usually given to students based on some form of demonstrated merit (e.g.,academic ability, community service involvement, particulartalent). Scholarships often require that the student has financial need in addition to being meritorious.Scholarships typically require the student submitting additional applications to the organization(s) offering the scholarship.
Work Study
Work Study is simply a part-time job, often on campus, for which a student earns a paycheck. It is considered financial aid because the government is paying a portion of the paycheck and the student must demonstrate need to qualify.Students must submit a FAFSA to determine theireligibility for work study.
Loans
Loans are aid funds that are borrowed and must be repaid at a future date. Federal student loans are considered aid in part because the interest rates are subsidized by the federal government, and except for PLUS loans, a credit check is not required.
Sometimes a portion of a federal loan can be forgiven (i.e.,not repaid)if a student goes into certain occupations or does full-time volunteer service upon graduation from school.
More information:Federal loans|Private loans
Need-Based Aid
The financial need of a student is determined by the information provided on the FAFSA. Financial need is simply defined as the difference between the student's cost of attendance and the EFC (expected family contribution—the family's ability to pay towards the costs of attending college, as defined by the federal government).
- Cost of attendance
- EFC (expected family contribution)
- Need
Since a student's EFC is the same regardless of which school they attend, a student's need varies based on the cost of the school.
FAQs
There are four basic types—grants, scholarships, loans, and work study—and four basic sources—federal, state, institutional, and private—of financial aid. All financial aid awards have a "type" and "source." For example, a Pell Grant is grant (type) that is funded through the federal government (source).
What are the 4 main types of financial aid? ›
Financial aid is money to help pay for college or career school. Grants, work-study, loans, and scholarships help make college or career school affordable.
What are the sources of financial aid? ›
A student must demonstrate financial need to qualify for a Federal Pell Grant. Some federal loan programs are available to all students, and some are based on financial need. Other sources of financial aid include state and local governments, institutions, and private sources, as well as private loans.
What are at least 3 types of aid that will be included in your financial aid package? ›
Types of Aid
Financial aid to pay for college is available from a variety of sources. Student aid includes grants, scholarships, work-study jobs, and loans.
Which of the following is a source of financial aid? ›
There are four main types of financial aid: loans, grants, scholarships, and work-study.
What are the 7 types of financial aid? ›
Work-Study
- Grants.
- Loans.
- Scholarships & Fellowships.
- Veterans' Aid.
- Work-Study.
- Doctoral Grants.
Options include grants, loans, scholarships, and work-study. Visit Types of Financial Aid on the Federal Student Aid website. You will learn about funding you can get from the government, your school, and private sources including: Grants.
What are the two basic types of financial aid? ›
There are two basic types of financial aid — gift aid and self-help aid. Like the name says, gift aid is assistance received that does not typically have to be repaid. Self-help aid includes work opportunities and loans, and is called self-help because the individual takes responsibility for receiving this type of aid.
What are two examples of financial aid? ›
Aid can consist of loans, scholarships, grants, or work-study programs. Most college students require some type of financial aid, as many cannot rely solely on personal savings or family wealth to pay their tuition and fees upfront.
What is the largest source of student financial aid? ›
Federal government – The U.S. Department of Higher Education provides the largest source of financial aid through its Federal Student Aid programs.
According to the Department of Education, most students qualify for some type of federal student aid. For federal financial aid, there are three types of funds: loans, grants and work-study. Federal student loans. These are fixed-interest-rate loans from the government.
What is the best type of financial aid? ›
Scholarships are the best form of financial aid you can receive to reduce the cost of college as the money is interest-free. Better still, there's no limit to the number of scholarships you can apply for and no limit to the amount of money you can win.
Which is not a type of financial aid? ›
The correct answer is d. Scholarships. Grants, work-study, and loans are three types of federal financial aid, but scholarships are not.
Which source does the majority of financial aid funding come from responses? ›
The majority of financial aid funding comes from the Federal government.
What provides the biggest source of financial aid to help students pay for college? ›
The FAFSA form is an application that students and families need to complete to apply for federal student aid, such as federal grants, work-study funds, and loans. Completing and submitting the FAFSA form is free, and it gives students access to the largest source of financial aid to help pay for higher education.
Which 3 of the 4 types of financial aid do not need to be paid back? ›
There are several different types of financial aid for college. Some of these are free, while others need to be paid back with interest. Scholarships, grants, and work study are the three main financial aid types that don't need to be paid back.
What are the four most common types of financial aid for college? ›
Aid can consist of loans, scholarships, grants, or work-study programs. Most college students require some type of financial aid, as many cannot rely solely on personal savings or family wealth to pay their tuition and fees upfront.
What are the 2 best forms of financial aid for college? ›
Federal loans and grants are the two major types of federal financial aid students receive after filing the FAFSA. But they're not the only two. There are a few other types of financial aid you can utilize including work-study, state aid and institutional aid.
Is financial aid and a Pell grant the same thing? ›
Unlike student loans, Pell Grants are not required to be paid back; they are considered “free money,” and can be used to cover your educational expenses. Financial aid is a broad term for any form of funding used to help pay for college expenses.
