Types of Aid

While grants and scholarships 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. A student loan is a form of financial aid that must be paid back with interest. We will discuss student loans in more detail later in this chapter.

Grants are funds provided by the government to help students pay for college. They are given to students based on their financial needs, and they do not need to be repaid. Some grants are specific to a particular academic major. Grants are awarded by the federal government, state governments, and educational institutions. Students meet academic qualifications for grants by being admitted to a college and maintaining grades that are acceptable to the grant provider.

A scholarship is money from your college or another institution that supports your education; it does not have to be repaid. Some scholarships are need-based—that is, they are awarded on the basis of both talent and financial need. “Talent” can refer to your past accomplishments in the arts or athletics, your potential for future accomplishments, or even where you are from. Some colleges and universities place importance on admitting 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 that cost. Your institution might provide scholarships from its own resources or from individual donors. Donors themselves sometimes stipulate the characteristics of scholarship recipients, such as age or academic major.

Other scholarships are known as merit scholarships. These are based on talent as defined above, but they 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, which are usually described on the college’s Web site.

Web-based scholarship search services are another good source for information on merit scholarships. 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 merit 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 merit scholarships.

Work-study programs provide part-time employment opportunities for students who receive financial aid if their aid amount is not enough to cover all their education costs. 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 are relatively menial, the best options provide experience related to your academic studies while allowing you to earn money for college. Your 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 supervisors might permit you to study during any down-time.

Cooperative (co-op) education allows you to alternate a term of study (a semester or quarter) with a term of paid work. Co-op opportunities are very common in the field of engineering, and the number of co-op programs in health care fields is growing. Colleges make information about co-ops available through the admissions office and individual academic departments.