There are two types of financial aid awards: gift aid and self-help aid. Gift aid does not have to be paid back. Self-help aid must be repaid through money or labor.

Gift Aid

• Scholarships are based on merit (for example: good grades, music ability, or athletic skills). Some are also based on need. Scholarships are offered through colleges, the community, and other organizations.
• Grants are awarded by the federal or state governments or by the school. Examples include the Federal Pell Grant and the Federal SEOG (Supplemental Education Opportunity Grant).

• Federal Work-Study is awarded to students with financial need. Students can work part-time to earn this award money to help with the cost of attendance. Work-study jobs can be found on or off campus through the school’s Financial Aid Office.
• Federal Perkins Loan is a low interest rate loan that aids students with a large financial need. As long as the student is enrolled in school, the federal government pays the interest on this loan. Financial aid officers at each college determine which students receive these loans and how much they receive.
• The Federal Subsidized Stafford Loan is a need-based loan with a low interest rate that varies but cannot exceed 8.25 percent. Freshmen may borrow up to $2,625, sophomores up to $3,500 and up to $5,500 for the remaining undergraduate years of school. Graduate and Professional students may borrow up to $8,500 per year. The federal government pays the interest on the loan while students are enrolled in college at least half-time and during deferment and grace periods.
• The Federal Unsubsidized Stafford Loan is non-need based. All students, regardless of need, can receive this loan. The amounts for this loan are the same for undergrads as for the Subsidized Stafford Loan. Graduate and Professional students may borrow up to $10,000 per year. Students are responsible for paying the interest while enrolled in school and during any grace period or deferment.
• The Parent Loan for Undergraduate Students (PLUS) is non-need based with a variable interest rate that cannot exceed 9 percent. These loans are available to parents of undergraduate dependent students, but the parents must have a good credit history. Parents can borrow up to the cost of education as determined by the school minus any financial aid received. Repayment usually begins within 60 days after funds are disbursed. However, rates, benefits, and deferment options vary for each organization or bank offering the PLUS Loan.

Alternative or Private Student Loans are offered through organizations and banks. Rates, repayment plans, and borrowing limits vary for each organization or bank.