What kinds of aid are there?

There are two types of financial aid. One is called merit-based aid. Merit-based aid doesn’t have anything to do with your family’s finances. It is awarded based on how good you are at something, like music, science, or athletics. A scholarship is an example. Merit-based aid usually doesn’t have to be paid back, though sometimes there are restrictions or conditions on the award.

The other type is called need-based aid. The amount of need-based aid you receive depends on how much you and your family can afford to pay towards your educational expenses. Generally, both students and their families are expected to help pay for college. This amount you and your family should be able to pay is called the Expected Family Contribution or EFC.