What Do Financial Aid Packages Include?

After you apply for financial aid, colleges calculate a financial aid package using a predetermined formula to determine your family’s financial need and what you should be able to pay. The basic financial aid package starts with aid based solely on need. Some colleges also give merit-based awards that recognize student achievement, and are not dependent on need.

Financial aid packages may include the following:

• Grants based on demonstrated financial need, such as the Federal Pell Grant
• Scholarships based on “merit”, as determined by such variables as: standardized test scores, general academic achievement, or exceptional accomplishment in a particular area, such as music, drama, mathematics or science. (These differ among individual colleges.)
• Federally subsidized, low-interest loans, such as the Stafford and Perkins loans. These loans are repayable by the student, with interest and repayment deferred as long as s/he is in school at least half time. Loans for parents are also available, from banks and other private sources.
• Work-study – the opportunity to take a part-time, on-campus job for a certain number of hours per week. College jobs recognize students’ academic priorities and offer flexible schedules at exam time. Many also offer valuable experience in the student’s area of academic/career interest.