CRASH COURSE IN FINANCIAL AID SERIES – PART 1
6 TYPES OF FINANCIAL AID FOR STUDENTS
1. Grants – these are need based college funding resources awarded to students according to the financial needs demonstrated on the Free Application for Federal Student Aid (FAFSA) form. They can be awarded by federal, state and institution based programs. Typically the lower the income, the more likely one qualifies.
2. Federal aid options – these are the options you want to exhaust first, prior to looking into private student loan funding options. Federal aid options include Stafford Loans, Pell Grants, Perkins Loans, and Supplemental Educational Opportunity Grants (SEOGs). Virtually everyone that files the FAFSA will be qualified for a federal Stafford loan, but not everyone will be qualified for grant funding.
3. Private student loans – additional funding to help pay for school once federal options have been used and funding is still needed for college.
4. Merit based scholarships – received from the college or an outside organization. They are awarded to students considering achievements, qualities, characteristics, academic performance and extra-curricular activities.
5. Work study programs – this is need based and you have to file a FAFSA to qualify.
6. Student employee – a possible option if you don’t qualify for work study.