Who Pays for Your Financial Aid?

Humble beginnings should not be a barrier for higher education. Thanks to the generosity of a plethora of institutions, financial aid may cover part or all of your college tuition, books, and even livin

Humble beginnings should not be a barrier for higher education. Thanks to the generosity of a plethora of institutions, financial aid may cover part or all of your college tuition, books, and even living expenses. Knowing who is willing to pay for your school will make it easier to find the right aid for your circumstances.

Your total financial aid package may include funding from the following sources:

• The federal government
• State and local governments
• Colleges and universities
• Private organizations and lending institutions

Financial Aid Funded by the Federal Government

The federal government funds over $78 billion in financial aid each year, disbursed in the form of:

• Federal Loans such as:
  • Perkins Loans, which are funded by the federal government and administered by individual schools
  • Stafford Loans, which are available to students and parents of dependent undergraduate students
  • Graduate PLUS Loans, which are available to graduate and professional students
• Federal Grants such as:
  • Pell Grants, which are available to students with the highest financial need
  • Academic Competitiveness Grants (ACG), which are awarded to first and second year undergraduate students who meet certain high school academic criteria
  • National Science and Mathematics Access to Retain Talent (SMART) Grants, which are awarded to third and fourth year undergraduate students who meet certain postsecondary academic criteria
  • Supplemental Educational Opportunity Grants (SEOG), which are awarded by the school to students with exceptionally high financial need
• Federal Work-Study, which provides students with the opportunity to obtain jobs on-campus and with nonprofit organizations off-campus

State Government Financial Aid

Most states offer some form of financial aid, in the form of grants, loans, or scholarships, to in-state students. Some states even offer assistance to their resident students to attend school in another state. It is possible to apply for most state programs using the Free Application for Federal Student Aid (FAFSA). Be sure to research your own state program because some may require a separate application. For specific details about assistance programs at the state level, contact a financial aid office at a school in your state.

Financial Aid From Colleges and Universities

Many colleges and universities have institutional funding programs that offer grants, scholarships, loans, and work programs to students who qualify. In addition to undergraduate opportunities, many colleges and universities also offer graduate teaching assistantships and research fellowship programs. The graduate department generally has more information on aid opportunities tailored specifically to graduate students.

Financial Aid From Private Sources

Banks, local businesses, and individual donors in your area may be able to fund your education with scholarships, grants, and loans.

• Private scholarships and grants are available from businesses, individual donors, service organizations, religious and cultural groups, the military, and professional organizations, to name a few. Check out free scholarship search sites on the Web (for example, Scholarship Search at http://apps.collegeboard.com/cbsearch_ss/welcome.jsp or FastWeb at http://www.fastweb.com). These free sites compare the information you submit with thousands of potential grants and scholarships that are available on the local and national levels. Scholarship research materials are also available at your local library. Note that you have to apply individually for each grant or scholarship, and that each may have different deadlines and requirements.
• Private loans are available from local and national lenders. Private loans typically come with higher interest rates that federal educational loans, offer different repayment options, and are granted based on the borrower's credit rating. Lending institutions are competitive and many offer benefits similar to those provided by federal education loan programs. Some lenders also offer additional benefits to existing customers. Shop around for the right private loan for your needs.