Rules of the Road
Your award will probably consist of a combination of gift aid, loan, and job. These aid types are very different from each other. You need to know the differences, what it takes to keep your aid for the first year, and how your aid might change in future years. Here are general guidelines.
Gift Aid Is the Best Form of Financial Aid
You don't have to repay it or work for it. Gift aid can be a scholarship (usually based on talent or personal attributes), a grant (usually based on need), or other free aid, such as a tuition waiver. Questions to ask:
- What do I have to do to keep my scholarship?
- Is there a minimum grade point average (GPA) or other condition?
- If I win an outside scholarship, what happens to my aid?
- Can the aid be increased if my family has financial problems?
- Do I have to do anything more than maintain satisfactory academic progress?
Loans Are Not Gifts; They Must Be Repaid
If your student loan is based on need, it will be subsidized. This means you don't have to pay the yearly interest while you're in college. However, after you leave school, your payments will include the amount you borrowed plus interest. Questions to ask:
- What are the terms of my loan?
- Is the yearly interest paid by the government?
- What is the interest rate, and when do I start repayment?
- How much will I owe by the time I graduate?
- What will my monthly repayment be?
- By how much will my loan increase after my first year?
Unsubsidized Loans
There's another category of loans—unsubsidized loans (also known as supplemental loans). They're used to help pay your share of the costs, and aren't based on need. These loans require you to make yearly interest payments. Don't count these loans as you calculate and evaluate your awarded aid.
A Job Is an Opportunity to Earn Money
Your earnings are used to pay education costs like books and personal expenses. The inclusion of a job, also known as student employment or work-study, means the aid office will help you find a position where you can earn the amount expected. Questions to ask:
- Do I have a guaranteed job, or will I have to find one?
- How are jobs assigned?
- How many hours per week will I be expected to work?
- What is the hourly wage?
- How often will I be paid?
- Will I be paid directly, or will my student account get credited?