How to Pay for College Use savings Students and their parents are expected to use their income and savings to pay for as much as they can. For information on ways that families can stretch their college dollars, go to Apply for financial aid Financial aid is money that is given, earned, or lent to help students pay for college. There is a great deal of financial aid available for students who qualify. Most of this aid comes from the federal government. Types of Financial Aid  Grants – money given, usually because of financial need  Scholarships – money awarded for academic achievement or an outstanding talent or skill  Work-Study – money earned at a part-time job  Loans – borrowed money that must be repaid Grantsandscholarshipsareconsidered“gifthelp”because theyrepresentmoneythatisgiventostudents.Work-study and loans are considered “self help” because they provide money that must be earned or repaid. Financial aid is most often awarded in the form of a “package.” Packages, which consist of grants, scholar- ships, work-study, and/or loans, are put together by the college’s financial aid office.