You'll encounter four basic types of financial aid: grants, scholarships, work study, and loans.

Grants are typically awarded based on need. You don't have to repay a grant.

Scholarships don't require repayment either. They're usually awarded on special ability, academic achievement, religious affiliation, ethnic background or special interest and are available through a variety of business, schools and community organizations.

Work Study This federal program gives you the opportunity to earn money for school, and gain valuable work experience. It's available to both undergraduate and graduate students with financial need. The amount you earn depends on several factors: need, other aid received, and availability of school funds.

Federal Perkins Loans This low-interest loan is offered by schools and awarded based on need and funds available. Federal Perkins Loans must be repaid after you leave school.

Federal Stafford Loans (subsidized and unsubsidized)
Subsidized Stafford Loans are offered to undergraduate and graduate students on the basis of financial need. While you attend school, the government pays the interest that accrues on these loans.

Unsubsidized Loans are offered to undergraduate and graduate students regardless of financial need. You are responsible for the interest that accrues on the loan while you are in school. You can either pay it as you go, or choose to have it added to your principal balance.