Student loans need to be paid back while grants do not. Grants that do not have to be paid back include the Pell Grant and the Federal Supplemental Education Opportunity Grant (FSEOC).
Low-income students are often eligible for a number of grants and loans to help them attend college. Determining how much a student is eligible for depends on their total household income. The lower the income, the more a student is eligible for. Because of this, a student is expected to fill out new applications for financial aid each year, notifying lending institutions of changes in income.
Students may be eligible for different types of aid from the government. Grants, such as the Pell Grant, are given in amounts of between $1 and $5,645 per year. They never need to be repaid.
Student loans need to be paid back after a student graduates. The terms of student loans are outlined in the loan agreement. Examples of student loans available include the Perkins and Stafford loans.
Another type of loan is the parent loan, called the PLUS loan. This loan comes from the government but instead of the student paying it back, the student's parents pay the loan back.
Work-study programs allow students to work on campus to earn money for school.