What are the Different Types of Financial Aid?
There are three basic types of financial aid: Need Based Grants: Beginning in January of their senior year, students and parents should complete the Free Application for Federal Student Aid (FAFSA). Based on information provided in the FAFSA, students may qualify for grants from the federal government due to demonstrated financial need. The most well known of these is the Pell Grant. Grants are gifts and do not have to be repaid. The FAFSA should be submitted whether the parents/sudents believe they qualify for aid or not. Many scholarship programs require information form the FAFSA. • Loans: Education loans for students and parents have low, capped interest rates and the payback period is extended to make the loans manageable. There are three basic types: • Stafford Subsidized Loans: Based on information provided by the FAFSA, students may qualify for subsidized loans. These loans are need based. The federal government pays a portion of the interest rate on these loans. The funds are
Three principal kinds of aid are available at Keene State College: Grants/Scholarships – gift aid which does not have to be repaid. Loans – must be paid back after dropping to less than half-time enrollment or leaving college. Part-time Employment – students receive an hour’s pay for an hour’s work and are expected to budget these earnings to meet educational expenses.
Students who first consider college and how they are going to pay for it may be overwhelmed with the financial aid options that are presented. In most cases, the financial aid options can be segregated into two major categories — grants and loans. A grant, for all intents and purposes, is a loan that does not have to be paid back. This category may also include forgivable loans, where the debt will be paid by the government or another institution, if certain conditions are met. Grants come in two different forms, scholarships and general student financial aid. In some cases, grants may be available for students for any reason. One of these grants, in the United States, is called the Pell Grant, which is available for nearly any student pursuing a first undergraduate degree. Scholarships are often based on performance, either in academics or perhaps in a sport or music. These are another form of financial aid with no payback required. Student loans do need to be paid back, but may be s