Students who have applied for financial aid will receive their college’s financial aid package soon after notification of their acceptance. Although all colleges use the FAFSA form (and may also use the CSS Profile or their own institutional form) to determine their offers of aid, the packages still may vary a good deal from institution to institution, not only in the amount of aid but also in the type of aid offered. You’ll want to compare offers from each of your colleges to help you and your family decide which college you will attend.
The most desirable type of aid is grant or scholarship money. This is truly “gift” aid, money that doesn’t need to be repaid. For some colleges, this may come in the form of a tuition “discount” or as an offer of in-state tuition to a resident of another state. Grants may be merit or need-based. Merit grants are generally offered to students who rank in the top quartile of the entering class or who have another desirable attribute, such as the ability to play the oboe or to quarterback the football team.
Loans usually make up part of the financial aid package; these may be subsidized or unsubsidized loans. The interest on subsidized loans is paid by the sponsor (often the U.S. government) until the student has completed his/her education and begins to repay the amount borrowed. The interest on unsubsidized loans must be repaid along with the principal amount. Repayment schedules vary from loan to loan. Although loans may comprise a part of the financial aid package, families are under no obligation to borrow this money for education. The loan amount is simply money that the family is expected to pay towards college expenses.
Students are often awarded work-study funds as part of their package. Work-study provides students with money to be earned through on-campus employment. There are several advantages to work-study jobs over other types of student employment. Money earned in this manner is not considered in determining the following year’s financial aid package. On-campus employers also tend to be more understanding of the student’s primary role as scholar, and usually permit time off for academic responsibilities.
