With the rising costs of higher education, many students rely on financial aid--including grants, loans and scholarships--to defray the costs of earning a college or university degree. Types of aid vary based on such factors as financial need and whether a student is enrolled full time.

Identification

Financial aid refers to the various types of assistance that students rely on to help meet the costs of a college education. These costs include tuition, required fees, textbooks, and housing.

Significance

According to the U.S. Census Bureau, six in 10 American college students receive some form of financial aid from outside their families. Many students rely on a combination of aid to finance their studies.

Types

Types of financial aid include student loans, grants, and scholarships.

Features

Students receiving federal student loans do not have to repay the money until after they graduate. Grants, such as the popular federal Pell Grant, do not have to be repaid. Numerous private scholarships exist for students who demonstrate a record of achievement in academics and other areas, such as sports.

Considerations

Students must demonstrate financial need to qualify for the federal Pell Grant.

Warning

Although student loans help many students finance their education, many graduates leave school with tens of thousands of dollars in loan debts, which must be repaid.

Source:

Census Bureau: College Students Receiving Financial Aid

Resource:

U.S. Department of Education: Free Application for Federal Student Aid

U.S. Department of Education: Student Aid on the Web