Everything You Need to Know about Financial Aid in 9 Paragraphs

There is a lot of unnecessary confusion about college financial aid. In fact, many people have serious misconceptions about what financial aid is. So, let's clear up some misconceptions by defining financial aid and the most important financial aid terms.

Financial aid comes in various forms; scholarships, grants (essentially the same as scholarships), work study funds, tuition waivers, fellowships, teaching assistantships (the last two for graduate students), and loans. And, financial aid can come to students from government, private, and college/university sources.

Many people think the terms scholarships and financial aid are synonymous. Actually, scholarships...also called grants...are one form of financial aid. Scholarships, requiring no repayment, are frequently awarded to high achievers, students whose abilities may be valued, or students whose families belong to a sponsoring organization (church, civic organization, corporation, etc.).

Not all financial aid requires demonstration of financial need. A student's financial aid is determined by a formula which is applied to the answers a student submits on the free federal financial aid form (FAFSA). Students must submit a FAFSA (on paper or online) if they wish to apply for need-based financial aid.

At some colleges only a FAFSA is required. Other colleges may require you to complete their own institutional financial aid form as well.

Most colleges and universities offer a form of aid called work study, which allows students to earn money working in campus offices (and occasionally off-campus non-profit organizations). Work study funds, and loans, are referred to as self-help aid.

Students may also receive aid in the form of student loans. Those with financial need (as determined by the FAFSA) are eligible to receive low interest, federally subsidized loans; those without need but with reasonable credit can also qualify for student loans, but will be subject to higher interest rates.

There really is not much else you need to know about financial aid except for the importance of meeting deadlines, the need to read and follow the instructions on the financial aid letters and publications sent to you, and the fact that you should contact your college financial aid office immediately if you encounter difficulty.

Best wishes as you pursue your education.

Article Source: http://mylilpeanut.com

University Dean Daniel Z. Kane invites you to visit his websites, which offer information on scholarships, financial aid, colleges, universities, campus life, college admission, online colleges, and online degrees.

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