How families pay for College:
  • Scholarships: awarded based on academic excellence or talent, but also may require applicants to show financial need in some cases. Scholarships do not need to be repaid.
  • Grants: form of institutional, federal or state aid that does not need to be repaid. Grants typically are given to people who demonstrate financial need.
  • Loans: agreements in which money is given over a period of time, during which the borrower owes the initial amount plus interest at some future time. For subsidized loans, the interest is paid while the student is in school. For unsubsidized loans, the interest accrues while the student is in school.
  • Savings: money that has been saved for the purpose of paying for higher education costs.
  • Income: parent and student contributions from a job or other income source.
Timeline:

Freshman and Sophomore Years

Junior Year

Senior Year

Questions to discuss as a family (parents and students):
Questions to ask a college or university you are considering:

A detailed glossary of financial aid terms is available at www.studentaid.ed.gov/glossary

Brought to you as a public service by Augustana College, Rock Island, Illinois.
© Augustana College 1994-2010