Financial Aid
Financial Aid is money provided by the federal government to help students and families pay for college. Almost every student that goes to college receives financial aid, but not everyone receives the same kind or amount.
Students and families complete the Free Application for Federal Student Aid (FAFSA) annually to qualify for federal and state financial aid including grants, work-study, and student loans. Additionally, the information on the FAFSA may be required for some scholarship opportunities. The different types of federal financial aid available are listed below:
Grants
Grants are federal and state awards that are set aside for students who need the most help paying for college. Grants do not have to be paid back, meaning they are FREE MONEY.
Work-Study
Work-Study is also provided by the federal government; however, instead of giving you the money, it requires that you work a part-time job during the school year at the college or with one of its partners. You earn this money, just like any other job, and do not have to pay it back after you graduate.
The difference between just having a job, and having a job with federal work-study is that the federal government pays 75% of your wages. This means the employer is motivated to hire you because the university office only has to pay the other 25%. Universities love this, and oftentimes they will only hire students who have federal work-study, as their budgets may be too tight to pay full wages.
Having university personnel as supervisors is often cited by students as a benefit of having a work-study job. These supervisors understand that the person is a student first, and often these supervisors will understand if time off of work is needed for academic work or tests.
Federal Student Loans
Loans must be repaid. Monthly repayment starts six months after graduation and continues until the debt is paid. Federal loans typically have low-net rest rates and vary on whether interest begins to accrue while in college or after graduation.
- Subsidized loans - the federal government pays the interest on subsidized loan while the student is enrolled. Interest on subsidized loans becomes the responsibility of the student and the loan begins to accrue interest six months after a student graduates or discontinues enrollment.
- Unsubsidized loans - interest begins to accrue immediately after the loan is accepted. Payment of the loan does not have to begin until six months after a student graduates or discontinues enrollment. However, the loan will grow as interest accrues and a student will pay an amount that is greater than the amount that they accepted the loan for.
Scholarships
Scholarships are given to students who show academic excellence or talents in areas like sports, music, community service, etc. Scholarships may have specific requirements that can come from the granting organization (college, community organizations, or businesses). Scholarships do not have to be repaid.
Scholarship applications may require additional information including academic transcripts, a resume, and letters of recommendation. Each scholarship has its own requirements. Make sure you research them carefully and pay close attention to their deadlines.
Students admitted to the University of Arizona gain access to Scholarships Universe, a free scholarship search engine. Students create a profile letting the system know a little more about the student and the system responds to your profile by providing you with scholarships that you may be eligible for and that you may choose to apply for.
NEVER PAY FOR A SCHOLARSHIP SEARCH!
There are organizations that target parents of first-generation, college-bound students offering to help families find scholarships. This support is often provided at a fee. Colleges and universities often advise families that they should use FREE scholarship searches, as well as FREE school and community resources.