Types of Aid
Financial aid seems complex because it can come from so many different sources. Each source may have different rules about how to receive the money and how not to lose it. The financial aid staff at your college can help you find the way to get the largest amount of money that doesn’t need to be repaid, the lowest interest rate on loans, and work possibilities that fit your academic program. Whether or not your family can help you pay for college, you should not overlook this valuable campus resource. The financial aid office and its Web site are the best places to begin looking for all types of assistance. Other organizations that can help students find the right college and money to help them attend are located across the United States. Many of these organizations are members of the National College Access Network or participate in a national effort called Know How to Go. Check their Web sites at http://www.collegeaccess.org/accessprogramdirectory and http://www.knowhow2go.org. Very few students complete college without some type of financial assistance, and it is rare for students to cover all college expenses with only scholarships. The majority of students pay for college through a combination of various types of financial assistance: scholarships, grants, loans, and paid employment. Financial aid professionals refer to this combination as a “package.”
Although scholarships and grants are unquestionably the best forms of aid because they do not have to be repaid, the federal government, states, and colleges offer many other forms of assistance, such as loans, work-study opportunities, and cooperative education. You might also be able to obtain funds from your employer, a local organization, or a private group.
- Need-based scholarships are based on both a talent and financial need. “Talent” can be past accomplishments in the arts or athletics, your potential for future accomplishments, or even where you are from. Some colleges and universities want to admit students from other states or countries. “Need” in this context means the cost of college minus a federal determination of what you and your family can afford to contribute toward those costs. Your institution might provide scholarships from its own resources or from individual donors. Donors themselves sometimes stipulate characteristics of scholarship recipients, such as age or academic major.
- Merit scholarships are based on talent as defined above but do not require you to demonstrate financial need. It can be challenging to match your talent with merit scholarships. Most of them come through colleges and are part of the admissions and financial aid processes, usually described on the college’s Web site. Web-based scholarship search services are another good source to explore. Be certain that the Web site you use is free, will keep your information confidential unless you release your name, and will send you a notice (usually through e-mail) when a new scholarship that matches your qualifications is posted. Also be sure to ask your employer, your family’s employers, and social, community, or religious organizations about any available scholarships.
- Grants are based on financial need but, like scholarships, do not have to be repaid. Grants are awarded by the federal government, state governments, and institutions themselves. Students meet academic qualifications for grants by being admitted to the college and maintaining grades that are acceptable to the grant provider.
- Work-study jobs are reserved for students with financial need. Students receive work-study notices as part of the overall financial aid notice and then can sign up to be interviewed for work-study jobs. Although some work-study jobs can be relatively menial, the best options provide experience related to your academic studies while allowing you to earn money for college. The salary is based on the skills required for a particular position and the hours involved. Keep in mind that you will be expected to accomplish specific tasks while on duty, although some employers might permit you to study during any downtime.
- Cooperative (co-op) education allows you to alternate a term of study (a semester or quarter) with a term of paid work. Engineering co-op opportunities are among the most common, and the number of co-op programs in health care fields is growing. Colleges make information about co-ops available through admissions and academic departments.
