Question

Briefly summarize each of the different student aid types that are available to you as a

prospective college student.

1. What is the difference between a grant and scholarship?

2. How do these differ from the Federal Student Loan options?

3. What is the key difference between Subsidized and Unsubsidized student loans?

4. Which of these aid types should you
be looking for, and why?

Answer 1

1. Grants and scholarships are both forms of student aid that do not need to be repaid. Grants are usually given to students who demonstrate financial need, while scholarships are usually merit-based.

2. Federal student loans are a form of student aid that must be repaid. These loans are based on the borrower’s financial need.

3. Subsidized student loans are loans where the government pays the interest while the student is in school. Unsubsidized student loans are loans where the student is responsible for the interest while in school.

4. Students should look for all forms of student aid that are available to them, including grants, scholarships, and federal student loans. Different aid types have different criteria and may be more or less beneficial depending on the student’s individual financial situation.