Financial Aid And Who Supplies It
Whether you have already chosen a college or university, or you are still trying to decide, right now is a good time to figure out what it is going to cost and how you will pay for it.
Each college or universities financial aid assistance office is there to provide information to help you figure out the possible expenses. There is no need to be discouraged if the cost of continuing education seems too high, financial aid assistance is available for all students who qualify.
Financial aid assistance is a general term for any financial assistance given to a college student for any type of postsecondary education such as four year College, two year College, trade and technical schools.
Generally, financial aid assistance is divided into two main groups:
• Need based financial aid assistance
• Merit based financial aid assistance
There will be several types of financial aid assistance as well as a variety of sources of financial assistance. Remember, not all financial aid will based on financial need. Some awards are made on academic performance or selected skills of a college student.
Most people believe they will need financial aid assistance to pay for college, and rightly so with the continues rise in cost of higher education. Because there is such a high need and funds are usually limited, the federal government has set policies to measure the need. However, most financial aid assistance will be based on need.
Need based simply means that your family’s financial resources, as measured by a formula established by the federal government, will not be sufficient to cover your educational costs. The EFC formula analyzes a family’s income and assets to determine its “Expected Family Contribution” (EFC) toward the cost of higher education.
The federal government’s definition of financial aid assistance need will compare your income and savings to the cost of the college or university you plan to attend. Therefore, if you have chosen to attend a local community college, your financial aid need may be much smaller, while if you choose to attend a higher priced college or university, your financial aid need could be much large.
Once you have determined your financial aid needs, the college or university you plan to attend will help you identify different sources of financial aid to meet your financial needs. If you apply for financial aid assistance early, college staff will probably be more successful in finding financial aid assistance for you.
Most financial aid packages will include a variety of types of financial aid to include:
• scholarships or grants (free money that will not need to be paid back)
• loans (money that will be paid back, usually at a lower interest rates than other types of loans)
• work study (a campus job)
Need based financial aid assistance can come from:
• Federal Government
• State Government
Sources of financial aid assistance will include:
• The Federal Government
• State Agencies
• Professional And Service Organizations
• Private Foundations
• Individual Postsecondary Schools
To learn more about the financial aid assistance programs in your state and any additional application requirements, you can contact the state financial aid agency. As an additional resource, your local high school counselor can also have information available about state programs.
State programs can include:
• Scholarships
• Grants
• Work
• State Loans
• Tuition Assistance
