This is part of the second chapter in Diane Melville’s “All About Financial Aid” series. See the bottom of this post for more links on today’s topic, Institutional Financial Aid.
In the last video, we talked about the types of financial aid you can receive from the federal government. In this video, we talk about the types of financial aid you can receive from your college. Just like the federal government, colleges award financial aid in the form of grants and loans.
An institutional loan is money given to you by your college or university that you have to pay back. Every school has different eligibility criteria, but in order to receive an institutional loan, you will usually need to:
- First complete the FAFSA.
- Demonstrate financial need.
In addition, schools serve as the lender within the Perkins Loan Program; however, these are federal loans, not institutional ones.
An institutional grant is money awarded to you by your college or university that you do not need to pay back. These kinds of grants may be based on financial need, but lots of schools offer grants based on merit, financial need and merit, talent, and other criteria as well. Along with grants, colleges may also offer their own scholarship awards.
Institutional grants and or scholarships may range anywhere from $1,000 awards to massive full-tuition grants.
Unlike federal grants, where all you have to do is complete the FAFSA to receive all the money that you qualify for, institutional grants and scholarships will sometimes require you to complete a separate application. Doing this extra work may sound annoying, but there’s an easy way to learn about what grants or loans your school offers: call them. Speak with an advisor at your financial aid office; they’ll tell you what you need to know.
For more information on institutional loans, scholarships, and grants, check out these helpful articles: