There are really only 3 categories of aid: Grants, work-study, and loans
Grants and scholarships (also known as “gift aid”): This is free money from either the government or your college. You do not have to pay it back.
Work-study: This is money you are guaranteed, as long as you work for it. For example, the federal government might offer you $1500 per semester in Work-Study. You’ll have to find a qualifying work-study job (there should be many on campus!) to earn that $1500. Different jobs may have different pay rates, so depending on what you get, it’ll mean a different number of hours before you max out on that $1500.
Loans: Loans should be your last resort, so only take what you need. But if you need to take them, max out first on the direct subsidized/unsubsidized loans offered by the government. (These have lower interest rates.) If that’s not enough, you might also be offered Parent PLUS loans which technically your parents must pay back, not you. These have closer to “market-rate” terms (meaning that they may or may not be better than take a private loan).
You’ll need to reply to your college to say what aid you accept or decline, so remember that while you should ALWAYS accept grants, scholarships, and work-study (if you don’t end up working, nothing happens)ーyou may choose to accept only part of the loans offered to you.
Find out more about grants and scholarships, work-study, and loans in your Parent Account.