There are several types of financial aid that students can use to help pay for college.
- Scholarships are awarded based on academic achievement, extracurricular activities, or other criteria.
- Grants are typically need-based and do not have to be repaid. They are awarded based on the student’s financial need, as determined by FAFSA.
- Loans, on the other hand, must be repaid with interest. There are two main types of loans: federal student loans and private student loans. Federal student loans are provided by the government and have fixed interest rates, while private student loans are provided by banks and other financial institutions and have variable interest rates.
It is important to note that some students may receive a combination of these types of aid, and students should exhaust all scholarship and grant options before considering taking out a loan.