NEWBERRY COUNTY — High school seniors and their parents beginning the college financial aid process will find there are many types of aid available. This list from Kentucky Higher Education Assistance Authority (KHEAA) provides short descriptions of the most common types.
• Conversion loan — This is a grant or scholarship that requires recipients to provide certain services. If they don’t, they have to repay the funds with interest. An example would be the Federal TEACH Grant.
• Grant — Grants are usually based on financial need and generally don’t have to be repaid. These include the Federal Pell Grant.
• Institutional aid — This term refers to the scholarships, grants and other financial aid provided by the college.
• Scholarship — A scholarship, like a grant, generally doesn’t have to be repaid. Scholarships are usually based on grades, athletic ability, artistic ability or criteria other than need.
• Student loan — Loans have to be repaid. The most common is the Federal Stafford Loan, sometimes called a Federal Direct Loan.
• Waiver — A waiver lets a student attend college without paying tuition. For example, some states give waivers to their residents 65 or older.
• Work-study — These programs let students work on or off campus to earn money for college. The Federal Work-Study Program is one example.
KHEAA is a public, non-profit agency established in 1966 to improve students’ access to college. It provides information about financial aid and financial literacy at no cost to students and parents. KHEAA provides the ThinkAhead Net Price Calculator to universities and colleges.
The calculator, available on a school’s website, lets students and parents determine their out-of-pocket costs for attending that school. KHEAA also helps colleges manage their student loan default rates and verify information submitted on the FAFSA.
In addition, KHEAA disburses private Advantage Education Loans on behalf of its sister agency, KHESLC. For more information about Advantage Education Loans, visit www.kheslc.com.