There are four types of student financial aid:
- Grants — This type of financial aid does not have to be repaid (unless you leave school and then owe a refund).
- Scholarships — These are granted by nonprofit organizations, foundations, and businesses. Scholarships are based on your personal history, merit, and area of study. They do not have to be repaid.
- Loans — This is money for school that you borrow. Loans almost always have to be repaid with interest, usually after you graduate.
- Work-Study — This is money you earn by working in a job that qualifies for work-study. Your college or university will help you coordinate your work-study arrangement. Most work-study jobs are on campus.