Financial aid guide for students and parents

Financial aid offers support to students as well as parents to meet the high cost of education which is beyond their financial ability. Financial aid is provided in the form of funds by the state and federal governments, universities or colleges and by various public as well as private financial sources.

Most of the time, financial aid is offered in the form of package or program or the combination of different financial aids. The basic types of financial aid programs include scholarships, grants, loans and work study. Grant is the assistance from state or federal government which doesn’t have any obligation to work or to make future repayments. Loans are kind of financial aid in the form of funds, which have repayment obligation attached to it. Like grant, scholarships provide assistance in the form of funds with no obligation to do any work or to make repayments. Work-study is a kind of financial aid in which part time work is offered from the institution while doing the study.

Financial aid is divided into two categories like need-based aid and talent-based aid. Need-based aid is offered to students who have strong financial need to complete their education. Many financial aids are offered on the basis of need which is evaluated through the application process and criteria prescribed by federal government. Talent-based aid is granted to candidates who have extraordinary skills or abilities to perform exceptionally in life. In order to eligible for appropriate financial aid, a student must be able to demonstrate his financial need. He must be enrolled as a regular student in an eligible degree or certified program. He must not be a defaulter in federal student loan or must not owe any money to federal student grant. The student should ensure that he will utilize financial student aid for the purpose of education and study only.

Financial aid is projected to meet the difference between what your education cost is and the amount your family may afford to pay. The system of financial aid is based on the initiative that, all students must have equivalent access to education and they should able to get it regardless of their poor financial background.