Hey everyone, I'm a high school junior and I'm trying to learn about financial aid for college. I know there are grants, loans, and scholarships, but I'm a little confused about how it all works. Can someone break it down for me? Thanks so much!
Hi there! I'd be happy to help you understand how financial aid works. Financial aid is essentially money provided to help students pay for college expenses. There are four main types of financial aid: grants, scholarships, loans, and work-study programs. Here's a quick breakdown of each one:
1. Grants: These are typically awarded based on financial need and do not need to be repaid. The most common grant is the federal Pell Grant, but there are also state and institutional grants available.
2. Scholarships: These are awarded based on various factors, such as academic achievement, athletic ability, or extracurricular involvement. Scholarships do not need to be repaid and can come from a variety of sources, such as schools, private organizations, or foundations.
3. Loans: These are borrowed funds that must be repaid, usually with interest. Federal student loans tend to have lower interest rates and more flexible repayment options than private loans.
4. Work-study: This is a federal program that provides part-time employment opportunities for students with financial need. The earnings from work-study jobs can help cover educational expenses.
To apply for most types of financial aid, you'll need to complete the Free Application for Federal Student Aid (FAFSA). I hope this helps! Let me know if you have any more questions.
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