TYPES OF FINANCIAL AID FOR COLLEGE
When you start your financial aid planning for college, you must know what types of financial aid are available through federal and private programs. College Funding of Tampa Bay gives you an overview to help you make an informed decision.
APPLYING FOR FINANCIAL AID FOR COLLEGE
Through different programs, college financial aid can help deserving students receive compensation for educational expenses (such as yearly tuition, fees, and necessary expenditures). After submitting the Free Application for Federal Student Aid (FAFSA), students can apply for federal/private loans, grants, scholarships, or work-study funds.
The eligible students’ funds vary based on individual program guidelines and the candidate’s financial needs. Understanding the basics of college funding can help you select the right pathway for financial aid. Representatives at College Funding of Tampa Bay can walk you through the process if you are unsure of the benefits of each program.
We also present the information in an easy-to-review format below.
TYPES OF FINANCIAL AID
College funds are divided into categories based on financial circumstances, federal government programs, and private college-funded programs.
Here’s a cursory glance at the main types of financial aid:
GRANTS
Grants are a type of financial aid that eligible applicants don’t have to repay unless stated otherwise. The federal government has created various grants to accommodate the candidate’s different academic programs and vocation choices.
Available grants include:
-
Pell Grants:
These private student loans are taken by the student. These are credit-based loans, meaning the student might need a cosigner to qualify.
-
Federal Supplemental Educational Opportunity Grants (FSEOG):
These are supplementary grants the federal government awards to individual colleges and universities. Participating individuals receive a fixed amount for each academic year. They can then award a designated amount to individual students who need financial support to complete their undergraduate degree.
-
Teacher Education Assistance for College and Higher Education (TEACH) Grants:
The TEACH Grant recipients receive up to $4000/year if they complete a four-year teaching service obligation. Terms and conditions require people who are studying to become educators to teach elementary or secondary schools in low-income areas.
These individuals must teach to fill a staff shortage for highly needed subjects (i.e., mathematics, English, special education, or others listed by the TEACH grant program).
The failure to complete the service may result in repayment (or require applicants to convert the grant into an Unsubsidized Direct Loan).
-
Iraq and Afghanistan Service Grants:
The special grant provided financial aid for college to students whose legal parent(s) or guardian(s) served in the U.S Army and died during their military deployment in Iraq or Afghanistan after 9/11. You may qualify only if you are ineligible for the Pell Grant because of your Expected Family Contribution. Yet, you still meet other requirements. Age restrictions also determine whether or not someone is eligible for this grant.
DO YOU NEED TO REPAY YOUR GRANT?
No, but some particular circumstances might require full or partial repayment.
Grant repayments are mandatory for students who:
- Owe a refund because they dropped out of college before completing their degree/certification
- Don’t complete their service obligation for the TEACH grant
- Receive a scholarship/grant or financial aid from independent benefactors/patrons or sponsorship organizations
- Change their enrollment status from full-time to part-time or fail to complete college credits due to which they become ineligible for their designated grant
Do you want to know more? Explore Our Resource for Grants.
SCHOLARSHIPS FOR COLLEGE
Several private and nonprofit organizations offer college scholarships to deserving students. This type of financial aid is awarded depending on different variables.
These include merit-based scholarships awarded because of:
- Exceptional academic performance
- Athletic talent
- Artistic talent (both performing arts or creative skills)
- Outstanding academic performance or potential demonstrated in particular area of study
Explore Our Resource for College Scholarships.
STUDENT LOANS
Loans refer to the college funds borrowed from the federal government. Eligible candidates must pay back the money with interest after graduation. Applicants receive different repayment options for student loans to help them pay the borrowed money successfully.
The federal government provides the following types of financial aid in this category:
- Direct Subsidized Loans: Eligibility is based on financial requirements.
- Direct Unsubsidized Loans: It can be granted to college students who may not have exceptional financial needs.
- Direct PLUS Loans: These are special financial provisions for professionals, graduates, or parents of dependent students. Eligibility isn’t determined by financial needs but requires a proper credit check to limit defaulters.
- Direct Consolidation Loans: A stream that combines different federal student loans to streamline repayment.
Aside from this, you can apply for a private student loan issued by your college or some other independent organization.
Explore Our Resource for Loans.
WORK-STUDY PROGRAMS
Federal work-study programs provide part-time jobs to college students to earn money for tuition fees and other educational expenses. Candidates will receive a minimum wage as per the latest federal guidelines.
That said, the final pay depends on designation, professional skills, and the work you do during your employment. These programs are determined by financial needs, school funding level, and application timing.
Explore Our Resource for Work-Study Programs.
FINANCIAL AID FOR MILITARY FAMILIES
These are special types of financial aid for colleges that provide benefits as additional aids or through standalone federal-based programs. Eligible applicants must either serve in the military or have a parent or spouse who’s a veteran.
The Iraq and Afghanistan Service Grants are one of the most common examples of this category.
