People searching for a source of financial aid may qualify for a scholarship, which is a source of funds that does not need to be repaid. Schools, churches and private companies are some of the organizations that may offer scholarships which are usually either based on an academic achievement, financial need, or a combination of a special talent or trait and academic achievement, according to the Department of Education. College students apply for the scholarship directly with the offering organization. Some scholarships have limitations, such as the awarded funds can only be used towards books and school supplies, and not towards living expenses.
Grants are funds given based on financial need from federal and state governments and colleges. These types of grants usually don't need to be repaid, according to the Department of Education. Some of the grants are specific in nature, such as the Teacher Education Assistance for College and Higher Education (TEACH) Grants which is geared toward college students who want to teach to teach in low-income areas. As of 2011, the Department of Education says there is more grant money available to college students than 10 years ago.
Student loans are a common way for college students to pay for post-secondary education if they don't qualify other types of financial aid such as grants or scholarships. Loans are borrowed money and need to be repaid in monthly installments after the student graduates, along with interest. The interest rate for student loans is typically lower than loans from other sources, such as banks. According to the Department of Education, more than $70 billion are given to people each year as low-interest student loans as of 2011.
The Federal Work-Study program provides undergraduate or graduate students with a way to find a part-time job on or off campus to help pay for their education. To qualify for the work study program, income, household size and the number of people in the household attending a post-secondary institution are taken into consideration. According to the Department of Education, more than 3,400 schools offer the program to thousands of students each year.