Financial Aid Facts

Interactive Video

[A smiling woman sitting on the couch, leaning against a pillow, with a laptop propped up on the couch’s arm.]

[100 person-shaped icons in rows. 1 icon highlights to represent the 1% of people who obtain a full-ride scholarship.]

Narrator: Did you know that less than 1 percent of students receive a full-ride scholarship, which covers tuition plus living expenses?

[A young woman wearing an apron, working with produce: green peppers and green grapes.]

[On screen text: Paying for college one paycheck at a time.]

What about students who pay for their own education with their savings or income? Roughly 45 percent of students have saved enough or work within a budget when choosing a school. 

[A pie chart highlighting 45% of students who have saved enough for college and who have a budget versus the remaining 55% of students who need financial help.]

That leaves more than 50 percent of students who need financial help to cover the cost of their education. 

Here’s one fact to make your head spin: Which college or university had the highest tuition in 2023–2024? 

[A text entry box for entering an answer with a Submit button.]

[On screen text appears after submitting an answer: Kenyon College in Ohio totaled $69,330!]

[Teenager wearing headphones, carrying books in his arm.]

So, how much income do you think you or your parents or guardians need to make to not qualify for financial aid? 

[On screen button labeled “See Answer”.]

[Selecting button reveals, “None!”]

[FAFSA: Federal Application For Student Aid pictured beside a label, “No income limits” with a slash through it.]

Yep! Are you surprised? There are no income limits for the Free Application for Federal Student Aid (or the FAFSA). So why not try?

[Collage of students in a computer class listening to their professor, students in a garage learning about a car engine from a mechanics instructor, students studying at a table with a professor, and students working in a lab on electronics.] 

Colleges and trade schools are expensive. 

[A calculator with the words “Financial Aid” on the display screen.]

It literally pays to understand what financial aid options are available so you can start your professional life with as much education and as little debt as possible! 

[A bar labeled “education” trends upwards while a bar labeled “debt” trends downward.]

[A pie chart with 89% highlighted showing the percentage of students who do not pay full price for school.]

According to the New York Times Magazine, 89 percent of students don’t pay the full sticker price for school. And the average freshman at a private nonprofit school pays only 50 percent of the full price.

[Young college-age student beside a dollar sign symbol breaking in half.]

[A man shrugging with arms spread. His thought bubble contains percentage symbols, dollar signs, and the acronyms FAFSA, EFC, and COA.] 

What’s the point of all these statistics? They prove that financial aid is not based on need alone. 

[A smiling woman sitting on the couch, leaning against a pillow, with a laptop propped up on the couch’s arm. Directional sign with 4 words: grants, student loans, work study, and scholarships.] 

There are a lot of education funding opportunities available out there for everyone, but you have to go looking for them!

Technically, you can use financial aid funds for more than tuition; things such as books, applications, and living expenses are also considered part of the cost of education.

Animation of money dividing in half with half moving left and half moving right.]

If you’re going to seek financial aid, it’s important to understand the different types available. Some you don’t have to pay back and some you do. Don’t assume that all aid is free money!

[Financial Aid Repayment Chart]

Grants: 

• awarded based on need, 
• greatest need. 
• Don’t repay

Scholarships:

• eligibility requirements
• awarded based on need or merit
• Don’t repay

Work study

• school jobs
• work while enrolled
• earn money
• Don’t repay

Loans

• government and private lenders
• repaid with interest after graduation or leaving school
• Repay

Grants are awarded based on a student’s need. Normally the people with greatest need get grants. You don’t repay grants.

Scholarships have eligibility requirements and can be awarded based on need or merit, which is based on academic, athletic, or artistic abilities. You don’t repay scholarships; however, be aware that many scholarships have rules, such as a minimum GPA that you must maintain to keep your funds.

Work-study jobs are arranged by schools. You work and get paid while you’re enrolled in school. Like any other income, you earn this money, so there’s nothing to repay.

Loans are funds lent to students (or their parents or guardians) to cover education costs. They’re offered by the federal and state governments, as well as private lenders. Loans must be paid back with interest, generally after graduation or leaving school. 

[Two college students holding to-go coffee cups, sitting on the grass on a college campus. The trees’ remaining leaves are shades of red or orange. The male student is holding his laptop on his lap. The female student is writing in a notebook.] 

[On screen text: savings + financial aid: grants, scholarships, work study, loans]

Most students attend school using their own or their family’s savings, plus a varied package of financial aid. Most financial aid packages include different types of funding.