Loans vs. grants. When comparing awards, look for the one that offers the most direct grants, even if others appear more generous, Cooper says. A direct grant, such as a Federal Pell Grant or Supplemental Education Opportunity Grant, is always preferable because it doesn't have to be paid back. The Internet site also includes descriptions of various loans and grants. Conditions on aid.
Some financial assistance has strings attached.
For example, your package may include work-study aid, which means the student must work part time to earn money toward tuition. That's not necessarily a bad idea. Some studies have shown that students who work part time earn better grades than those who don't, says Robert Murray, spokesman for USA Funds, which guarantees student loans. But if your child intends to pursue a double major in physics and East Asian languages, you may want to decline the work-study, or look for a package that offers other types of assistance. If the aid falls short After analyzing your offers, you may reach the awful realization that you still can't afford to send your child to college.