8 Types of Financial Aid for College Students & How To Apply

The cost of college may seem daunting, but financial aid provides a way to turn your goals into reality. Whether through scholarships that reward achievements, grants that ease the burden for those with financial need, or loans that help bridge funding gaps, there are many resources available to make higher education attainable.

Below, we'll explain eight different types of financial aid if want to learn more about paying for a bachelor's degree. By exploring these options and taking the right steps to apply, you can create a plan that makes your college dreams both achievable and affordable.

Financial Aid Options

The kinds of financial aid listed below are offered through the federal government, nonprofit organizations, the military, or companies. You'll be able to combine several of them when paying for your college tuition.

1. Scholarships

Scholarships are financial awards that do not need to be repaid, making them one of the most sought-after forms of financial aid. Award amounts can vary widely, ranging from a few hundred dollars to cover small expenses like textbooks, to full-ride scholarships that pay for tuition, room and board, and sometimes even additional costs like study abroad programs.

Many scholarships are merit-based, meaning they are awarded for achievements in academics, athletics, community involvement, or unique talents. Others are need-based and are specifically designed to help students from low-income families afford college.

You can find scholarships through several sources, including:

• Online scholarship databases: Platforms like Fastweb, Scholarships.com, and Cappex allow you to search for scholarships for online students tailored to your background, major, or interests.
• Colleges and universities: Many institutions offer scholarships for incoming and current students. These can be merit-based, need-based, or tied to specific academic programs.
• Local organizations: Community groups, religious organizations, and businesses often fund scholarships for local students.
• Professional associations: If you are pursuing a specific career field, industry groups frequently provide scholarships to support students in their profession.

Deadlines for scholarships are critical and vary by program. For example, national scholarships often have deadlines between October and March for the following academic year, while local or college-specific scholarships may have deadlines extending into the summer. Keeping a detailed calendar and applying early can help you maximize your opportunities.

2. Grants

Another form of financial aid that does not need to be repaid is a grant, making it an excellent resource for students with financial need. They are typically awarded based on your family's income, assessed through the FAFSA, and are funded by federal or state governments, colleges, and private organizations.

The Federal Pell Grant is the most common, offering up to $7,395 per year to undergraduates with significant financial need. The Federal Supplemental Educational Opportunity Grant (FSEOG) provides an additional $100 to $4,000 annually for those with extreme need, though funds are limited and awarded on a first-come, first-served basis.

State grants also support in-state students, with programs like Cal Grants in California or the Texas Grant program offering substantial aid. Colleges often provide institutional grants from their own resources, while private organizations and nonprofits offer grants for specific groups, such as single parents or first-generation students.

To find grants, complete the FAFSA form for federal and state aid, check your state's higher education agency for local programs, and consult your school's financial aid office. Online resources like GrantForward and Scholarship America can also connect you with private grants tailored to your needs.

Learn More: Pell Grants For Online Students

3. Federal Student Loans

Loans are borrowed funds that must be repaid with interest, offering a way to cover college expenses. Federal student loans often have lower interest rates and flexible repayment options, including income-driven plans and loan forgiveness programs. These loans are generally more affordable and accessible than private loans, which may require credit checks or cosigners. The types of federal loans that the FAFSA can make you eligible for include:

• Subsidized loans are for undergraduate students with financial need. The government pays the interest while you're in school.
• Unsubsidized loans are available to all students, regardless of financial need. Interest accrues from the time the loan is disbursed.
• PLUS loans are for graduate students or parents of undergraduates to cover education costs not met by other financial aid.

4. Work-Study Programs

Work-study programs offer students the chance to earn money while attending college. These programs, often funded by the federal government, provide part-time employment opportunities related to your field of study or within the campus community.

Work-study jobs typically have flexible hours, allowing you to balance your coursework with employment. Positions may include roles such as research assistants, library aides, or administrative support staff. By participating in work-study, you can gain valuable experience, reduce your reliance on loans, and offset the cost of your education.

5. Private Student Loans

Private student loans are an option for students who need additional funding after exhausting scholarships, grants, and federal aid. These loans are provided by banks, credit unions, and online lenders and often require a credit check or a cosigner.

Private loans can help cover tuition, housing, and other educational expenses, but they come with higher interest rates and stricter repayment terms. While they can be a useful tool in funding your education, it's important to carefully review the terms and conditions before borrowing. Comparing lenders and understanding repayment obligations can help you make an informed decision.

6. Military Financial Aid

Military financial aid provides specialized support to active-duty service members, veterans, and their dependents, making higher education more accessible for those connected to the armed forces.

Post-9/11 GI Bill

This comprehensive program covers up to 100% of in-state tuition at public colleges and provides a monthly housing allowance, funding for books, and supplies. Private school students may also receive funding up to a set annual limit.

Read More: GI Bill For Online Students

Yellow Ribbon Program

The Yellow Ribbon program supplements the Post-9/11 GI Bill for veterans attending private schools or out-of-state public universities. Participating institutions contribute additional funds, which the Department of Veterans Affairs matches, helping cover higher tuition costs.

Montgomery GI Bill

Available for active-duty and Selected Reserve members, the Montgomery GI Bill offers monthly benefits for education and training, with funding amounts based on the program length and student enrollment status.

ROTC Scholarships

These scholarships cover tuition, fees, and other expenses for students in the Reserve Officers' Training Corps. In return, recipients commit to serving in the military after graduation.

Military Spouse and Dependent Benefits

Programs like the Survivors' and Dependents' Educational Assistance (DEA) and the Fry Scholarship provide financial aid for eligible family members of service members.

To access military financial aid, start by visiting the U.S. Department of Veterans Affairs (VA) website to explore eligibility and apply for programs like the Post-9/11 GI Bill. For ROTC scholarships, connect with the military branch you're interested in joining. School advisors and military support offices can also guide you through institutional resources and application processes.

7. Employer Tuition Assistance

Employer tuition assistance programs are increasingly popular, offering employees financial support for higher education. These programs often reimburse tuition costs, pay for courses directly, or provide funding for certifications aligned with job roles. They not only reduce out-of-pocket expenses but also enhance professional skills and career opportunities. In some cases, employers may require a service commitment after completing your education. Some popular companies with tuition reimbursement programs include Amazon, Walmart, Kroger, Starbucks, Home Depot, and Chase.

The amount of money employees receive and the requirements for receiving the money changes, so be sure to research each company's policy and talk to your manager to find out more about tuition reimbursement programs.

8. Crowdfunding and Community Support

Crowdfunding has become a creative way to fund education by reaching out to your community for support. Platforms like GoFundMe allow you to share your educational goals and ask for contributions from family, friends, and even strangers.

While crowdfunding success depends on your ability to tell a compelling story and engage your audience, it can help cover expenses like tuition, books, or housing. Community organizations, churches, and local nonprofits may also offer financial support through small grants or donations.

How To Apply for Financial Aid

Applying for financial aid requires organization and attention to deadlines but is not difficult to do. Follow these steps to maximize your chances of securing funding:

Securing financial aid for college involves several important steps. By staying organized and proactive, you can maximize your funding opportunities and minimize financial stress.

Complete the FAFSA

Begin by filling out the Free Application for Federal Student Aid (FAFSA). This form assesses your family's financial situation and determines your eligibility for federal aid, including grants, loans, and work-study programs. Many states and colleges also use FAFSA data to allocate their own aid, so completing it is essential.

Learn More: Affordable Online Colleges That Accept Financial Aid

Search for Scholarships and Grants

Look beyond federal aid to find additional funding. Use online databases like Fastweb, Scholarships.com, and Cappex to discover scholarships and grants tailored to your academic achievements, extracurricular activities, or personal background. Don't forget to check with your school's financial aid office and local organizations, which often have smaller, less competitive awards.

Meet Deadlines

Deadlines for financial aid applications vary, but submitting your FAFSA and scholarship applications early can significantly improve your chances of receiving aid. Keep a calendar of important dates to ensure you don't miss any opportunities.

Review Your Financial Aid Offer

After being accepted to a college, thoroughly review your financial aid package. Assess the details of grants, scholarships, and loans offered, comparing them carefully to determine the most effective way to cover any remaining tuition, fees, and living expenses.

Follow Up and Reapply Annually

Financial aid must be renewed annually. Keep track of application deadlines and required documents to ensure you receive uninterrupted support for tuition, fees, and other educational expenses throughout your college education.

Find Out How You Can Afford College

College may seem expensive, but many schools are willing to help you figure out how to pay for tuition. Use the resources on Learn.org and contact colleges for more information.