A higher education is a lifetime investment. Financial aid programs were created to help students and parents realize that a college education is attainable and achievable. The main sources of financial aid are:

• Federal government
• State government
• Institutions (colleges and universities)
• Private sources (associations, foundations, employers, unions, etc.)

Student financial aid consists of any source of funds available to students and their families for paying for the cost of any postsecondary education. Financial aid funding options can be merit-based, need-based, and non-need-based.

Merit-based: Designed to assist students who excel in areas such as academics, sports, leadership, music, art, dance, etc. It is used to recruit and recognize students for their special talent or merit. Need-based: Determined by completing the Free Application for Federal Student Aid (FAFSA). Student may be able to demonstrate that they and their families cannot pay for all of the postsecondary education costs on their own. Students who demonstrate financial need based on the results of the FAFSA may be eligible to receive an award based on their need for aid. Non-need-based: Available to those students who do not demonstrate financial need or who have additional expenses that exceed need-based or merit-based aid.

Financial aid can be grouped into different types:

College Savings Programs: Prepaid tuition plans or saving and investing over time (529 plans). Scholarships: Awards based on need and/or merit; do not have to be repaid. Grants: Awards based on need; do not have to be repaid. Self-help: Loans which must be repaid with interest upon leaving school and work-study for which students work while attending school. Tax Credit and Deductions: Offset higher education costs by reducing the amount of income taxes paid.