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Types of Aid

Most financial aid awards fall within two categories:

  1. "Gift aid," in the form of grants and scholarships, are awards that do not have to be repaid, though could have requirements to maintain them. 
  2. "Self-help" refers to awards that require something in return from you. Awards include work-study and student loans. Work-study requires you to secure a part-time position, usually on campus, to receive your paycheck. Loans require repayment with interest.

You could be offered a financial aid package consisting of various types of aid. The rule is, free money first (scholarships and grants), then earned money (work-study), then borrowed money (federal student loans).

Grants & Scholarships

When you're applying for grants and scholarships, make sure you understand the conditions you must meet. For instance, you might have to maintain a certain grade-point average in order to continue receiving a grant.

More about grants →

More about scholarships →


Work-study is an on-campus job that lets you earn money based on how many hours you work.

You don’t have to pay the money back, but you do have to work for it, so take into account that that’ll mean less time for studying. However, research has shown that students who work part-time jobs manage their time better than those who don’t.

More about work-study →

Federal Student Loans

With all loans, you have to repay the money with interest after graduation. Subsidized loans don’t start accruing (accumulating) interest until you leave school, so accept a subsidized loan before an unsubsidized loan.

More about federal student loans →

Private Loans

Private loans come from banks and other private institutions. You’ll have to repay the money with interest, and the terms and conditions of the loan almost certainly will not be as good as those of a federal student loan.

More about private loans →