Understand Financial Aid in Five Minutes

Financial aid is much simpler than folks think. Essentially, it's a question of understanding a few basic terms, including the often misunderstood meaning of "financial aid".

Financial aid comes in various forms; scholarships, grants (essentially the same as scholarships), work study funds, tuition waivers, fellowships, teaching assistantships (the last two for graduate students), and loans. And, financial aid can come to students from government, private, and college/university sources.

Many people think the terms scholarships and financial aid are synonymous. Actually, scholarships...also called grants...are one form of financial aid. Scholarships, requiring no repayment, are frequently awarded to high achievers, students whose abilities may be valued, or students whose families belong to a sponsoring organization (church, civic organization, corporation, etc.).

Student financial need is determined by the FAFSA form, which needs to be completed (online or on paper) every year. The information on your FAFSA will be plugged into a formula (called the Congressional methodology) to determine your degree of financial need, if any. But, even if you have no need, you will not be ruled out for some forms of aid.

At some colleges only a FAFSA is required. Other colleges may require you to complete their own institutional financial aid form as well.

Student who qualify by virtue of need may be offered work study jobs in college offices or at non-profit agencies in nearby communities.

Students with financial need, as established by the FAFSA, may qualify for government subsidized, low interest loans. Those without need can also borrow, but at higher interest rates.

Understanding financial aid pretty much boils down to understanding the above definitions. Navigating the financial aid maze involves just two things; meeting deadlines and communicating effectively with your college or university financial aid office.

Best of luck.

Article Source: http://www.articlegoldmine.com

University Dean Daniel Z. Kane invites you to visit his websites, which offer information on scholarships, financial aid, colleges, universities, campus life, college admission, online colleges, and online degrees.

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