• 5 Steps
• What Is Financial Aid?
• The Application Process
• Where Aid Comes From
• Types of Financial Aid
• Who Is Eligible?
• Cost of Education
• Family Resources
• How To Apply
• Do You Have Enough?
• How To Reduce Unmet Need
• Links

Types of Financial Aid

Two Basic Types of Financial Aid

Merit Based Aid: this is awarded to students based on their accomplishments within and outside the classroom. Grades, test scores, talents, and community service are all common elements of merit based aid.

Need Based Aid: this is awarded to families demonstrating eligibility for this type of financial aid based on need. The fewer financial resources a family has, such as income and assets, the more need-based aid they may be eligible to receive. You do not need to be considered "low income" to receive need based financial assistance. You must however demonstrate a "need" for financial assistance for programs in this category.

The majority of financial aid awarded to students and families today is need-based.

Financial aid can come in several forms:

• Gift Aid is financial aid that does not have to be repaid. Grants and scholarships are considered gift aid.
• Student Employment is financial aid a student earns. Student employment includes work study programs and part time jobs.
• Loans are money a student borrows for his/her education. Loans must be repaid, usually with interest. Some loan programs have forgiveness provisions that allow them to be repaid through "return service". There are loan programs offered to both students and parents. Before borrowing, students and families should exhaust all grant, scholarship and other available resources first.

Not all students are able to demonstrate financial need. Therefore, other sources of financial aid may be needed. These sources include supplemental loan programs from lending institutions, local scholarships and others.