Think of the Types of Financial Aid as a Pie this Thanksgiving

Just as a Thanksgiving feast is incomplete without the decorative pies adorning the side table, your understanding of financial aid is incomplete without the analogy of a pie. Those delicious baked goods offer a reprieve after the yumminess of meat and side dishes that melt right in your mouth. Similarly, you can think about the types of financial aid as a pie at your Thanksgiving dinner.

The crust of the financial aid pie comprises two elements. The first element is self-help aid, and the second is gift aid. Self-help aid requires a student to act to receive the financial aid award. Git aid is no different from a holiday or birthday gift. There are no strings attached to the gift. Award recipients freely accept gifts with no expectation of repayment.

There are different types of financial aid programs in the financial aid pie. On the self-help aid side of the pie, there are loans and work-study programs. Loans require a student to repay the interest with principal after completing their educational studies. Work-study programs require students to earn wages through on- or off-campus jobs. Loans and work-study programs fall under self-help aid because there’s an expectation that students will perform an act in exchange for financial assistance to finance their academic studies.

There are scholarships and grants on the gift aid side of the pie, offering a variety of opportunities. Scholarships can come from institutional sources, private donors, charitable organizations, and state entities. Undergraduate students typically receive a scholarship at the time of their admission to the college or university they applied to. Grants can come from various sources but are more commonly associated with federal and state governments. Grants can sometimes apply to other costs of attendance outside of tuition, such as room and board.

Whether it’s the self-help or gift aid side of the pie, most students have the power to combine these financial aid sources. This flexibility allows them to create a durable financial aid package to finance their academic studies. Grasping the various types of financial aid can make constructing your financial aid pie much easier next year.