Financial Aid

Financial aid summary:

• Financial aid can include loans, grants, scholarships, work-study, or tuition assistance.

• Student loans require repayment, but most other types of financial aid don't require any repayment.

• A good first step to getting financial aid is filling out the Free Application for Federal Student Aid (FAFSA).

Financial aid definition and meaning

Financial aid is monetary assistance meant to cover educational costs such as tuition, fees, and supplies. It could be actual cash, or it could come in the form of a tuition or fee waiver. 

Some types of financial aid require repayment, while others don’t have to be repaid. You can find both government-subsidized and private financial aid.

Key concept: Financial assistance meant for educational costs, including tuition and related expenses. 

Financial aid: a comprehensive breakdown

Here's a brief rundown of the different types of financial aid:

• Loans. You must repay student loans with interest. You can get federal student loans that are regulated by the government, or private student loans directly from a lender.

• Grants. Grants are funds that you don't need to repay, typically awarded based on financial need. The Federal Pell grant is one of the most common, and many states have their own grant programs.

• Scholarships. Scholarships, which don’t need to be repaid, can be awarded based on many different criteria, including academic achievement or community service. Scholarships are offered by a wide variety of organizations.

• Work-study programs. A work-study program provides students with part-time work to help cover education costs, often in an on-campus position. You don't need to repay money from a work-study program.

• Fellowships. Similar to a work-study program, fellowships are typically for post-graduate students. They can require research, teaching, and working on specific projects. You don't need to repay the money from a fellowship.

• Tuition assistance or reimbursement. Some employers offer tuition reimbursement or assistance programs. Assistance or reimbursements can cover the costs of certain education programs that could help you in your career. You typically don't need to repay money from these programs.

How to get financial aid

The first step to getting financial aid is to fill out the Free Application for Federal Student Aid (FAFSA) online. This will show you the federal loans, grants, and work-study programs you could be eligible to receive. Many states and schools will also use your FAFSA to determine aid.

You can typically submit a FAFSA through June 30 of the academic year. Many schools award aid on a first come, first served basis, so it's important to get your FAFSA submitted earlier rather than later.

Other ways to find financial aid are:

• Contact your school's financial aid office.

• Ask your employer about tuition assistance or reimbursement.

• Find out if any organizations you or your parents belong to offer scholarships or grants.

Even small scholarships and grants can be good to pursue, as they can reduce the amount of student debt you need to take on and repay.