You Got Your Financial Aid Award, Now What?

 Every college has different resources and methods when awarding financial aid. You should compare more than just the amount of aid being offered. Other  factors such as the type of aid and how long you will receive the aid are equally important.

Types of Aid

• Free Money: Scholarships and Grants are examples of free money. This type of financial aid is preferred over others because it doesn’t have to be paid back. Some colleges have more scholarships and grants at their disposal than others. When comparing award letters, determine how much free money each college is offering.



• Earned Money: Work-Study Programs are examples of earned money or “self-help” aid. These Federal employment programs provide jobs to students to help cover their college expenses. Colleges may try to find you a job in your field of study so that you can also build career skills. However, consider that work-study often pays only the minimum wage. If you can find a job around campus on your own, you may be able to make more money than a work-study job will pay.



• Borrowed Money: Federal Education Loans & Alternative (Private) Loans are examples of borrowed money. This type of aid can be borrowed by students or their parents and must be repaid, usually with interest. Although it is not the most desirable type of aid, student loans can often help bridge the gap when all other financial aid resources have been exhausted.

Length of Aid

If scholarships and grants are part of the aid being offered, determine if they are one year awards or if you will continue to receive them until you complete your studies. Although a $5,000 scholarship may seem better than a $2,500 scholarship, you may find that the $5,000 is only awarded for one year while the $2,500 is offered over four years (a total of $10,000).


If student loans are part of the aid being offered, take the time to understand how much you can afford based on the salary you expect to earn after you graduate. With different terms and interest rates, some student loans will cost more than others so choose wisely.


Note: Colleges have different strategies for awarding financial aid. Some strive to meet 100% of your need and others provide what they can and encourage you to seek other sources of aid. These strategies may play a role in your financial aid award. However, if you have special circumstances you should contact each school’s financial aid office to determine if any additional aid is available.