Financial Aid Basics

Any type of assistance used to pay college costs that is based on financial need. The three main types are: grants, scholarships, and loans.

• grant

• scholarship

• financial aid

• loan

Also known as gift aid, this is money from the federal and state governments and individual colleges that does not need to be paid back.

• grant

• financial aid

• scholarship

• loan

Monetary gifts based on need/ merit that don't have to be paid back

• grant

• financial aid

• scholarship

• loan

Federally sponsored campus-based program that provides employment opportunities for students with demonstrated need

• financial aid

• grant

• scholarship

• work-study

Money available to be borrowed that is guaranteed by federal govt. and are available to students to fund education

• financial aid

• scholarships

• loan

• work-study

Need-based loan in which the interest is paid by the government while you are in school

• loan

• Subsidized loan

• Unsubsidized loan

• Private loan

Government sponsored loan that is not need-based. The student is responsible for paying the interest on the loan

• loan

• Subsidized Loan

• Unsubsidized Loan

• Private Loan

These types of loans typically require a co-signer and come from banks, credit unions, and home equity

• loans

• Subsidized Loans

• Unsubsidized Loans

• Private Loans

Borrowed money available to students through the college or university that they attend.

• Subsidized Loans

• Unsubsidized loans

• Private Loans

• College-sponsored loans

The total amount of interest you pay each year represented as a percentage of the loan balance

• Annual Percentage Rate (APR)

• Percentage Rate Annually (PRA)

• interest paid

• cost