* Grants: Free money you don't have to repay. This can include federal grants (like Pell Grants), state grants, and institutional grants offered by the college itself.
* Scholarships: Similar to grants, these are usually merit-based awards given for academic achievement, athletic ability, or other talents. They don't need to be repaid.
* Loans: Money you borrow and must repay with interest after you graduate (or while you're in school, depending on the loan type). This includes federal student loans and sometimes private loans.
* Work-study: A program that provides part-time jobs on or off campus to help you earn money to pay for college expenses. This isn't technically "free money," but it's a way to reduce the cost of attendance.
The award letter will break down each of these components, showing you the amount of each type of aid offered. The total amount of all these combined is your total financial aid package. It's crucial to understand the breakdown because it will show you exactly how much your education will cost *after* receiving aid and how much you will need to pay yourself (out-of-pocket).