Financial Aid Overview
STEP 1: What is Financial Aid?
Grants
A grant is a need-based form of financial aid that does not have to be repaid. Grants are generally provided by individual states or the federal government and include:
- Federal Pell Grants:
This is the most common form of federal aid. They are need based, provided by the federal government and awarded by schools.
- Federal Supplemental Educational Opportunity Grants (FSEOG):
These grants are awarded by schools and provide assistance for undergraduates with the greatest financial need.
The program gives priority to students who receive Federal Pell Grants.
- Utah Centennial Opportunity Program for Education (UCOPE) Grants: UCOPE grants are funded by the state of Utah for Utah residents attending schools in Utah.
Schools make the awards. All applicants must complete the FAFSA. Funds are limited, so apply early. Utah schools that offer UCOPE Grants.
- Leveraging Educational Assistance Partnership (LEAP): LEAP is also a campus-based grant. Your college or university, with funds from the state of Utah, matches federal funds and allocates these grants to students that meet federally defined guidelines. The maximum award is $2,500. For eligibility requirements and application materials, please contact the school financial aid office. Again, funds are limited, so apply early. All applicants must complete the FAFSA. Utah schools that offer LEAP grants.
A loan is a form of financial aid that must be repaid with interest. The main loan options are student loans, parent loans, and private loans. Federal and state loans include:
- Federal Perkins Loans:
These are available to students who demonstrate the most serious financial need. They are federally funded and awarded by
the school. These loans have the best terms and conditions; however, they are usually small in amount due to limited funds.
- Federal Stafford (Subsidized and Unsubsidized) Loans:
These loans are awarded on the basis of financial need and are regulated by the federal government. Students may be borrowing from a bank, a credit union, or directly from the government.
A subsidized Stafford Loan is the loan of first choice, since the government pays the interest while students are in school.
Students who do not qualify for a subsidized Stafford Loan may take out unsubsidized Stafford Loans. These students are responsible for paying the interest while still in school, but may postpone payment of interest and principal until after graduation.
- Federal PLUS Loans: These loans are for parents of undergraduate students. They are based on credit history and require a credit check. The interest rate is low, but repayment begins immediately.
Scholarships are a form of aid to help you pay your undergraduate tuition. Like grants, they do not have to be repaid. Generally, scholarships are reserved for students with special qualifications, such as financial need and/or academic, athletic, or artistic talent.
Institutional scholarships can be based on financial need, academic ability, or outstanding talent. Many are offered by private colleges and universities, though thousands of private scholarships are also available from other sources. To find out more about these scholarships visit your high school guidance counselor, college financial aid office, the Internet, your local library, or with the UtahMentor scholarship search.
The state of Utah also funds scholarships.
- New Century Scholarship Program: The New Century Scholarship provides opportunities to Utah students who complete the requirements of an associate degree or its equivalent at a state institution of higher education by September 1 of the year they graduate from a Utah high school.
- Centennial Scholarship: The Centennial Scholarship is a full- or partial-tuition scholarship that can be used at any postsecondary institution in Utah that is accredited by the Northwest Association of Schools and Colleges. To be eligible for the scholarship students must graduate early from high school and must enroll in an eligible postsecondary institution within one year of graduation from high school.
Work Study
Work study provides students with employment opportunities both on and off campus. Participation in a work-study program is typically based on the student's financial need. Generally, there are two forms of work-study programs at the federal and state level, which include:
- Federal Work-Study Program:
This program allows students to subsidize their tuition and expenses with on-campus jobs. To be eligible, applicants must demonstrate financial need.
- Utah Centennial Opportunity Program for Education (UCOPE) Work-Study Program: UCOPE Work Study is funded by the state of Utah for Utah residents attending colleges and universities in Utah. The program provides work to subsidize costs for going to college. Financial need is an eligibility requirement. All applicants must complete the FAFSA. Schools make the awards. So be sure to talk to someone in the financial aid office.
There are several financial assistance programs benefiting special groups. Getting creative with your options may also help in paying your way through college.
For more information, visit the College Q&As section, log onto the Federal Student Financial Aid website, or contact the Financial Aid Office at the college you are planning to attend.
Another source of information is the listing of additional financial aid resources on the Web.
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