Need is defined as the difference between the total cost of attending a particular college and the amount a family is expected to contribute to paying that cost. Because most aid is need-based, the price of college, less aid, declines with income. However, a substantial amount of aid is available that is not based on need. Many national and community-based organizations also offer scholarships that are based on criteria other than financial need. Grants and loans are the most common types of student aid.
Student aid comes from many sources, but the majority of funds come from the federal government.
Federal student aid accounts for 72 percent of all funds awarded to students, states supply 6 percent, and colleges and universities and private sources contribute 22 percent. Students' Contribution Regardless of their parents' income, students are expected to make a contribution to the cost of their education. Many students make this contribution with earnings from jobs they hold during the academic year. Three out of four undergraduates work during the academic year. About half of all BA recipients graduate with student loan debt.