<p>As the name implies, I'm a novice at this and I was reading some other posts stating what their financial aid package included. One included several thousand dollars in grant money. What does that mean? Where does that money come from?</p>
<p>it usually comes from federal government, state, or the university.</p>
<p>they are given to you for free and does not need to be paid back.</p>
<p>ok....so do you have a certain income to qualify for grants, or how do you qualify for them? And will they be offered only at public universities?</p>
<p>They are not for public universities only. Privates have grants too - the $$ amount varies from college to college.</p>
<p>for public grants usually they are for people from low income. they do have competive state grants like california but those are based on if they have any money left over.</p>
<p>Order of preference for Financial Aid:</p>
<h1>1. Grants-no payback</h1>
<h1>2 Scholarship-no payback</h1>
<h1>3. SUBSIDIZED Loans (Government pays interest while in school-you repay loan at low rate after graduation.</h1>
<h1>4. Unsubsidized Loans: Interest compounds while in school-but lower than going interest rate. You repay after graduation.</h1>
<h1>5. Private loan programs. Variable rates and fees.</h1>
<p>To the above fine list, I'd add that for the neediest students, financial aid awards often have 3 parts, combining grants, loans and work-study.
The last one is an expectation that the student will take a job (usually around l0 hours/week) while on campus or work fulltime over the summer.
Some kids who need some, but not heaps of money might be given loans and work-study.
The work-study can help cut down the size of the loan somewhat, so you have less debt upon graduation.</p>
<p>Since you asked about how you qualify for grants, a key thing to look for is whether the school assigns financial aid based upon "need" or "merit." Sometimes it's a bit of both.
Need means your family can't afford the entire tuition and COA (cost of attendance) so needs help.
Merit means you have some talent or attribute (academics, sports, underrepresented minority, tap dancing, whatever anyone ever gave the school money to promote...). Even wealthy kids can get merit scholarships!
When you apply, you or your family will submit mucho paperwork online with their tax forms, value of houses, incomes, expenses, etc. so the schools get a picture of how much your family can be expected to pay. (EFC=Expected Family Contribution). Then the school, depending on its resources, will offer an award at the same time they tell you if you're admitted (April 1 of senior year, or sooner depending on how you apply).
It's very important to get an idea from your parents what their expectations are for paying towards college. If they can write easy checks for $40K per year, you have nothing stopping you from applying anywhere. But if they have limits, then it might affect which schools you apply to.
Sometimes people have been surprised to find that the big sticker prices of private colleges, once the college throws in their financial aid, come close enough to what your family can afford that it opens up the possibility of attending a private college. Some of the private colleges have alumni who send in donations, set up "endowments" of interest-earning money to create scholarships for new students.
Look into the Financial Aid section of CC and read a lot; you'll pick up the main ideas. Then get GOOD INDIVIDUAL ADVICE. It is surprising that there are opportunities out there that aren't obvious just by looking at the "pricetag" or "sticker price" of a private college.</p>