Financial Aid

Financial aid is money from government, state, and institutional sources that helps students pay for college, trade schools, and career training. It includes grants and scholarships that don’t need to be repaid, work-study jobs that let students earn money, and loans that must be paid back with interest. Most federal aid is based on financial need, determined by the Free Application for Federal Student Aid (FAFSA), but some aid also rewards academic achievement, talent, or service.

Grants, Scholarships, and Savings

Grants and scholarships are forms of “free money” that reduce out-of-pocket costs. Federal grants like Pell Grants help low-income undergraduates, while state and school-based grants add more support. Scholarships can come from many sources and may be based on grades, skills, or background. Families can also plan ahead with tax-advantaged accounts like 529 college savings plans.

Student Loans

When grants and savings fall short, students often borrow through federal student loans. These loans have set borrowing limits and repayment rules that vary by loan type. Before borrowing, it’s important to understand how much you can afford and what your options will be after graduation, which is covered in detail in Federal Student Loans: A Guide to Borrowing Limits and Rules.

Military and Veteran Benefits

Service members, veterans, and their families have access to special education funding. Active-duty personnel can use DoD tuition assistance, while those interested in becoming officers can explore ROTC scholarships and officer training. Military spouses can pursue career goals with help from the MyCAA scholarship program.

Getting Started and Additional Help

Most students begin by completing the FAFSA, which unlocks eligibility for federal, state, and many school-based aid programs. International students should review Studying in the USA: A Guide for International Students to understand visa and funding rules. For more support, see Essential Resources for College Students.