Final answer:
Kyle should accept financial aid in the following order: grants, scholarships, work-study, and then loans, focusing on taking on the least amount of debt. Grants and scholarships do not have to be repaid, work-study programs provide income during school, and loans come with the burden of repayment. Option 1 is correct answer.
Step-by-step explanation:
When Kyle receives his financial aid award letter, the order in which he should accept aid is: grants, scholarships, work-study, and then loans. This approach makes sense for several reasons:
- Grants and scholarships are forms of aid that do not need to be repaid, typically awarded on the basis of need, merit, or a combination of both. Therefore, they are the most beneficial to accept first.
- Work-study programs provide part-time employment while you are enrolled in school and can help you earn money to pay for educational expenses without incurring debt.
- Lastly, loans should be accepted after other forms of aid because they must be repaid with interest. When considering loans, it's important to distinguish between subsidized and unsubsidized loans, and prioritize subsidized loans as the government covers the interest while you're in school.
Submitting the FAFSA® form is vital, as it determines your eligibility for federal aid and is often used by states and colleges to award their own aid. After evaluating all available options including grants, scholarships, work-study programs, and loans, students like Kyle should select the aid that will benefit them most in the long term, which generally means minimizing potential debt.