Types of Financial Aid
Understanding the different types of financial aid available can help you make informed decisions about funding your education. Financial aid comes in several forms, each with different requirements and benefits.
The main categories include grants and scholarships (free money that doesn't need to be repaid), loans (money that must be repaid with interest), and work-study programs (part-time jobs that help pay for education expenses).
Federal Financial Aid
The federal government offers several types of financial aid:
• Pell Grants: Need-based grants that don't need to be repaid (up to $7,395 for 2023-24)
• Federal Student Loans: Low-interest loans for students and parents
• Federal Work-Study: Part-time employment opportunities for students
• TEACH Grants: For students planning to teach in high-need areas
• Federal Supplemental Educational Opportunity Grants (FSEOG)
To apply for federal aid, complete the Free Application for Federal Student Aid (FAFSA) at fafsa.gov.
Scholarship Strategies
Scholarships are competitive, but with the right approach, you can increase your chances:
• Start early - many scholarships have early deadlines
• Apply broadly - don't just focus on large, well-known scholarships
• Look for local opportunities - community organizations often offer scholarships
• Check with your intended college - they may have institutional aid
• Use scholarship search engines like Fastweb, Scholarships.com, and College Board
• Write compelling essays that tell your unique story
• Meet all requirements and deadlines
• Apply for scholarships throughout college, not just senior year
State and Institutional Aid
Don't overlook state and college-specific aid:
State Aid:
• Most states offer need-based and merit-based aid programs
• Some states have specific programs for in-state students
• Research your state's higher education agency website
Institutional Aid:
• Colleges offer their own scholarships and grants
• Merit-based aid for academic, athletic, or artistic achievement
• Need-based institutional grants
• Special programs for first-generation college students