What is Financial Aid Financial aid is money provided to help you reduce the total cost of attending a college, university, vocational, technical, or flight school. Financial aid is awarded in the form of scholarships, grants, loans, and work-study. They do not have to be repaid. Loans Loans are self-help aid that is borrowed. They must be repaid.
Interest is the price of borrowing the money.
They normally offer a lower interest rate than other loans. The reasoning is that the government pays the interest for you during your enrollment in school. Repayment of your loans may be deferred , or forbearance for certain reasons without a penalty. Some student loans may be partly or entirely canceled if you perform certain services. These loans are non-need based and will usually have a higher interest rate.