What Comes Next?
Post Secondary Resource Guide
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Financial Aid: Types
Check out the information below to learn about different types of financial aid.
Types of Financial Aid
Federal Student Aid
Grants and Scholarships: The federal government offers a variety of federal grants to students based on financial need. Scholarships are usually based on achievement. This financial aid does not need to be repaid. To learn more about grants available from the U.S. Department of Education, click on the links below.
Loans: This is borrowed money that must be repaid with interest. Loans made by the federal government usually offer lower interest rates and more flexible repayment options. There are 2 federal loan programs. To learn more, click the links below.
1. The William D. Ford Federal Direct Loan Program is the largest student loan program. The U.S. Department of Education is your lender. There are 4 loans available.
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Direct Subsidized Loans: Loans for eligible undergraduate students who demonstrate financial need. These loans are to help cover college costs. Colleges pay the interest on the loan.
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Direct Unsubsidized Loans: Loans for eligible undergraduate and graduate students who do no need to demonstrate financial need. The interest is NOT covered by the college.
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Direct PLUS Loans: Loans made to graduate students and parents of dependent undergraduate students to help pay for education expenses.
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Direct Consolidation Loans: Allows you to combine all of your federal student loans into a single loan with a single loan servicer.
2. The Federal Perkins Loan Program is a school-based loan program for undergraduates and graduate students with exceptional financial need. Under this program, the school is the lender.
Work Study Jobs: This program provides part-time jobs for undergraduate and graduate students with financial need allowing them to earn money to help pay for school. It is administed by schools in the Federal Work-Study Program.
Other Aid
Aid from Your State Government: Even if you are not eligible for federal aid, you can contact your state grant agency for more information related to additional financial aid. Michigan's Student Scholarships and Grants
Aid from Your College or Career School: Many schools offer financial aid that does not come from the federal government. This includes scholarship competitions. Visit your school's financial aid page or call the financial aid office to learn more.
Aid from a Nonprofit or Private Organization: Many organizations offer scholarships and grants to help students pay for college. Do some research and apply to scholarships or grants you may be eligible for.
Scholarships: This is money you do not have to pay back, so apply to as many scholarships as possible. You can find local scholarship opportunities, regional, and national scholarships. Search online and contact your school counseling department for more information.
Creative Options
The College Board offers some creative suggestions and options for financial aid and making college more affordable.
Credit through testing: Through the CLEP and AP exams, you can receive college credit for a course if you pass the standardized tests. The more courses a student tests out of, the fewer classes he or she has to pay for.
Cooperative (co-op) education: This is a blend of classroom study and work experience related to the major. During the undergraduate program, co-op students alternate work assignments with college studies. The college arranges the the job and work schedule, but the employer pays for the time worked.
Accelerated graduation: Students may take the maximum course load to earn more credits for the same price. This option should only be considered by students who believe they can manage the heavy academic load.
Two years, then transfer: This is a very popular option where a student attends a community college for the first 2 years and then transfers to a 4 year college or university.
The military: If you score high enough on the ASVAB, the armed forces can offer educational benefits to help pay for college.
Part-time employment: Some college students work a part-time job to help cover college and living costs. Research shows that more than 20 hours of part-time work a week may have negative effects on a student's grades.
Apprenticeships: This is on the job training under the supervision of a qualified member of the profession. Each program has different requirements.
AmeriCorps: AmeriCorps is a network of national service programs where volunteers meet critical needs in education, public safety, health, and the environment. AmeriCorps members are eligible to receive an education award after completing a term of service. www.americorps.org