College financial aid helps students and their families by covering higher education expenses, such as tuition and fees, room and board, books and supplies, and transportation.
There are several types of financial aid:
Grants.
Scholarships.
Federal or private loans.
Work-study and other programs.
Different types of aid are provided through various sources, such as federal and state agencies, colleges, high schools, foundations and corporations, to name a few. The amount of aid a student receives depends on federal, state and institutional guidelines.
Keep in mind that the way federal financial aid works is that students must first apply for the aid by answering a series of questions used to determine their ability to pay for college.
Then, aid is awarded based on that application, and students have the choice to accept or reject the aid offered. The type of aid offered determines whether it will have to be repaid. Sometimes, students must complete additional applications to be considered for other scholarships or private aid.