Types of Financial Aid
Grants are also known as gift aid: they are based on need and do not need to be repaid. They come from federal or state governments or from the college itself.
Scholarships are a form of financial aid that is usually based on merit, sometimes in combination with need. Some are given to a student who exhibits a particular ability or skill such as athletics or music: others are awarded for academic achievement. Scholarships are often renewable for each college year, usually contingent on the student continuing to participate in the activity that prompted the award; or in the case of academic scholarships, maintaining a certain achievement level or GPA.
In this case, the student earns the money awarded, often working on campus in the book store, library or dining commons Students may be able to find employment related to college studies or community service. The typical number of hours worked is 10-15 hours/week, and the salary is often greater than minimum wage.
Loans are a part of most financial aid packages, and they must be repaid, usually with interest. Fortunately, most government loans do not have to be repaid until after graduation. Loans can either be need- based or awarded without regard to a family's financial situation and they may be awarded either to the student or to the parent(s).
Students and parents should get all of the facts about the loan before signing a loan agreement Loans must be repaid according to the terms of the loan, even if the student does not finish college or is dissatisfied with the educational program.