Types of Financial Aid

Financial aid includes grants, scholarships, work-study and student loans. Some types of financial aid are based on merit, talents or special abilities, while other types are based on financial need.

Grants

Grants are funds that don’t have to be repaid. They may be based on financial need and can come from a variety of sources. The most common types of grants come from federal and state agencies and colleges. The Iowa College Student Aid Commission administers several state grants and scholarships. For information on federal grants, refer to the U.S. Department of Education Web site.

Scholarships

Scholarships are awarded through private donors. As with grants, they don’t have to be repaid, but most are based on merit or financial need. It is not necessary to pay for scholarship search services. Scholarship search services don’t have access to databases that can’t be accessed by the general public. Scholarships can be searched for free through high school counseling offices, college financial aid offices or through the Iowa College Access Network (ICAN). Click here for links to free scholarship searches through ICAN.

Work-study

Work-study allows students to earn money in college to help meet their college expenses by working at a part-time job. Work-study is an excellent opportunity for students to get some experience while earning money to help pay for their education or personal expenses. Most schools will provide a paycheck for the hours worked each pay period. In order to receive work-study funds, a FAFSA must be filed.

Student loans

Student loans are debts that must be repaid with interest. In most cases, payment begins after a student has graduated or left college. Eligibility for student loans is determined by the results of the FAFSA. Work with your financial aid professional at your college/university to explore and exhaust all other sources of federal, state and/or institutional financial aid, whether a grant or loan, prior to obtaining a student loan.