A Guide to the Different Types of Financial Aid

At University of Advancing Technology (UAT) we know financing Higher Education can be a significant investment. Fortunately, there are quite a few financial aid options that can help with the cost. These options are available to prospective students as well as parents looking to help finance the cost for their child. Identifying and understanding the different types of aid can ease the stress of the financial aid process. Below, is a list of a few different financial aid options available to explore to see how they can be beneficial to students. 

1. Grants

Grants are a form of financial aid that does not need to be repaid. This makes them one the most desirable financial aid options for students. They are awarded based on financial need and can come from state, federal or institutional sources. A couple of grant options are:

• Pell Grant - This is a federal grant awarded to undergraduate students with financial need. 
• Federal Supplemental Educational Opportunity Grant (FSEOG) - This type of grant is awarded to students with exceptional financial need. 

To apply for either of these grants, a FAFSA application is required.

2. Scholarships

Scholarships are another form of financial aid that does not require repayment, but they are usually awarded based on merit. This can include, academic performance, athletic ability, artistic talent, leadership, and other criteria. Some scholarship sources are:

• Institutional Scholarships - These are awarded from colleges and institutions. 
• Private Scholarships - Offered by companies, nonprofit organizations and philanthropic foundations.
• Local Community Scholarships - Awarded by community groups including Rotary Clubs or local businesses. 

There are other places including Scholarships.com to search for even more scholarship options. 

3. Student Loans

Student loans are a common way to finance your education, and unlike the the first two types of aid, this one requires repayment with interest. There are multiple types of student loans, including:

• Federal Student Loans - These loans usually offer a lower interest rate in comparison to private loans and have more flexible repayment options. To Apply for any of these loans, a FAFSA application is required.
  • Direct Subsidized Loans - A type of loan offered to undergraduate students with financial need. For this type of loan the Department of Education pays the interest while the student is in school.
  • Direct Unsubsidized Loans - This type of loan is offered to both undergraduate and graduate students, and interest is accrued from the onset of the loan.
  • PLUS Loans - These loans are available to graduate students and parents of dependent undergraduate students looking to cover the remaining costs.
• Private Student Loans - Private loans are offered by banks, credit unions, and other private lenders. These types of loans are likely to have higher interest rates than federal loans. 

4. Military and Veteran Benefits

Military and veteran benefits may be available to students who are military service members, veterans, or dependents of veterans through programs such as:

• GI Bill - Provides education benefits for veterans and military service members. 
• Tuition Assistance - Covers tuition costs for active duty military. 
• Yellow Ribbon Program - Additional tuition coverage at private institutions for eligible military veterans. 

5. Tuition Reimbursement & Employer Assistance 

Tuition Reimbursement is a benefit offered from some employers to their employees looking to further their education. This type of financial aid can reduce education cost, especially for those working while pursuing their degree. Be sure to check with your employer to see if this is a benefit they offer! 

More questions? Check out our Financial Aid FAQ! 

Ready to get started on your journey at UAT? Apply now!