Types of Financial Aid
- Grants - need-based, do not require repayment
- Federal Direct Loans (subsidized and unsubsidized) - need-based, require repayment but interest and payment are deferred until the student has been out of school for a variable amount of time as determined by the loan agreement (typically six months or more)
- Federal Work Study - need-based, student must obtain a job on-campus to receive a paycheck
- Student Employment - non-need-based, student must obtain a job on-campus to receive a paycheck
- Parent PLUS Loan - non-need-based, a loan taken out by the parent of a dependent student that is in the parent's name and repayment starts immediately after disbursement (no grace period for repayment)
- Graduate PLUS Loan - non-need-based, a loan taken out by an independent graduate student that is in the student's name, payment is deferred while the student is in school at least part-time
Loans are, by far, the largest source of financial aid for the majority of students and families. There are four main sources of financial aid. These include the federal government, the state government, the institution, and private entities. The federal government is the largest source of financial aid.