Pay for College: Types of Financial Aid

Fund your education with federal, state, institutional, and private scholarships, grants, loans, and work-study programs. Your financial aid package may contain a mix of these types of aid. Here's information about these different types of aid.

Local & National Scholarships

And application form and a personal essay may be all that's standing between you and funding your college expenses. Local, regional, and national scholarships specifically for black students are available based on financial need and/or exceptional ability.

Civil rights and social action groups like the United Negro College Fund provide funding for scholarships to help black students pay for college. Find these scholarships by visiting online scholarship search Web sites or visit to your local library. Free scholarship search sites provide the same information as paid sites so make sure the sites you choose are free.

Federal Grants & Work-Study

Typically, you do not have to repay a grant you use to pay for college. Need-based grant awards from the federal government include:

• Federal Pell Grant: A need-based grant for undergraduate students. The maximum award for the 2008-09 school year is $4,731.
• FSEOG Grant: A supplemental grant for students with exceptional financial need. Your school generally awards this grant to Pell Grant students with the highest need.
• TEACH Grant: Up to $4,000 per year for students who intend to teach in a public or private elementary or secondary school that serves students from low-income families.
• Academic Competitiveness Grant: A need-based grant for full-time students in their first year ($750) or second year (up to $1300) who are eligible for a Pell Grant and who have completed a rigorous high school program.
• National SMART Grant: A need-based grant for third or fourth year full-time students who are eligible for a Pell Grant and who are majoring in certain majors determined critical to national security.

The Federal Work-Study (FWS) program is an option for students hoping to use part-time employment to fund their education. Community service programs and campus jobs are the most common FWS employment opportunities, and average work-study awards were $1,335 per student for the 2007 fiscal year.

Fill out a Free Application for Federal Student Aid (FAFSA) to be considered for federal, state, and institutional aid. You can renew online each year to reapply for aid.

Federal & Private Loans

While you must repay federal and private loans, they often feature a lower interest rate than credit card payments, which allows you to pay for college without racking up high-interest debt. You must file the FAFSA to apply for federal loans. To apply for private loans, contact your lender directly. It's a good idea to shop around because different lenders may offer incentives.

It's easy to use a mix of financial aid programs to pay for college. Contact your school's financial aid office for more information.

Sources
FAFSA
FSA Grants
FWS Program