Types of college financial aid

By: | Times-Dispatch
Published: April 26, 2009

MORE:

• Help available for families seeking college aid

• Types of college financial aid

• College fairs remain very busy

FINDING OUT ABOUT AID
Here is a partial list of sources about financial aid.
• Schools: High schools and colleges offer a wealth of information
• CollegeBoard:
• U.S. Department of Education
• Federal Student Aid office
• Virginia Association of Student Financial Aid Administrators
• State Council of Higher Education of Virginia or call (804) 225-2600
• Fast Web

Grants: Grants are what some in the financial-aid industry call "free money."

They don't need to be repaid. Some are given by universities, but most come from federal and state governments.

There are several types of grants, including grants for academic achievement, Pell Grants for students who meet need requirements, and federal work-study programs, which find students jobs to offset college costs.

Pell Grants are given to low-income graduates. According to the U.S. Department of Education, the total amount of money available to students from the Pell Grant in 2010 is $5,500. That's up from $4,860 in 2009.

Scholarships: Scholarships are available to students for a number of reasons.

They can range from full scholarships based on athletics or academics to small ones available for many reasons.

There are several Web sites that list available scholarships. Financial-aid experts warn that parents and students should not pay for the information because it is readily available.

Experts also say that parents should look at their companies as a source for possible scholarships, as well as businesses with strong community ties.

Loans: Student loans are a major way to pay for college. Too often parents and students look at student loans as separate from financial aid, but it's actually an integral part.

The loans, for the most part, are low interest and subsidized by the federal government.

Loans that go directly to students aren't due to be paid back until after graduation.

The federal government backs Stafford Loans, Parent PLUS loans, and Perkins loans. Each has a different qualifying standard, but students can get the loans even if their parents do not qualify for them.