Grants are called gift aid because they do not have to be paid back.  grants come from the federal and state government and from colleges. Federal government (Pell Grant), state government (Cal Grant), California College Promise Grant, California Dream Act, Incentive Grant Program, or from the college directly. Students may qualify for grants due to their financial or academic status. Grants do not need to be repaid. They are usually given based on your family's financial circumstances. 

• Pell/Cal Grants– Federal Grants / CA State Grants are forms of financial aid that do not need to be paid back. Grants are usually awarded to undergraduate students who have not earned a bachelor’s degree or professional degree. The amount of aid you receive depends on your financial need, the school’s cost of attendance, and other factors. ( certain exemptions apply for repayment) 
• Federal Supplemental Educational Opportunity Grants (FSEOG)– FSEOG are grants for undergraduate students with exceptional financial need. FSEOG are administered directly by the financial aid offices of participating schools.
• Teacher Education Assistance for College and Higher Education (TEACH) Grants– TEACH grants can help you pay for school if you plan to become a teacher and teach in high-need fields in low-income areas. In order to qualify for a TEACH grant, you must commit to teaching for a certain length of time.

Scholarships are also free money that you receive from colleges or outside private organizations. Most students earn scholarships because they have done something special they have great academic and personal achievements, they have volunteered, they are talented in some way, interested in a certain subject, have financial need, are underrepresented, STEM students, overcome a challenge, or just simply they want to pursue a certain career, etc. Scholarships can be earned directly from colleges or by applying to them on your own. There are also many online scholarship search sites, but keep in mind that you should never have to pay a company or individual for scholarship information.

College Work-Study programs are jobs offered by colleges that provide part-time employment while you are enrolled in school. Being awarded work-study does not guarantee employment, but students must indicate they are interested in work-study when submitting the FAFSA to be considered.

Loans are money that must be repaid. Loans are available from the federal government, private institutions, or colleges.  Borrowing money from a bank, government, or lending company is called taking out a loan.  a loan must be paid back with an extra charge in interest. The federal government offers low-interest loans to students with financial needs. Other lenders charge more interest. 

Federal Loans - The U.S. Department of Education has two federal student loan programs:

• The William D. Ford Federal Direct Loan (Direct Loan) Program is the largest federal student loan program. Under this program, the U.S. Department of Education is your lender. There are four types of Direct Loans available:    
  • Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school. 
  • Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but in this case, the student does not have to demonstrate financial need to be eligible for the loan.
  • Direct PLUS Loans are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid.
  • Direct Consolidation Loans allow you to combine all of your eligible federal student loans into a single loan with a single loan servicer.

The Federal Perkins Loan Program is a school-based loan program for undergraduates and graduate students with exceptional financial need. Under this program, the school is lender. 

PRIVATE LOANS are granted by private banks and may help to bridge the gap between the cost of your education and the amount of financial aid you receive from the government. Eligibility for private loans often depends on your credit score, and private loans tend to have higher interest rates than loans that the government offers. Students are encouraged to pursue all options for federal student aid before entering into a private loan.

WORK STUDY is a program where you can earn money that helps you pay for school. Work-study programs provide students with federally funded jobs on campus or at other approved locations. The campus facilities at many colleges and universities, including the student center, career center, athletic department, and residence halls, employ work-study students. However, the positions available and the pay offered vary widely.