QandAs: Loans

Is Financial Aid the same thing as a Student Loan?

Answer:
Student loans are one type of financial aid.

Other kinds of aid include Grants, Fellowships, and work-study programs. Student Loans are unique to Grants in that you must pay back the money you receive plus interest after you graduate.

Most financial aid packages contain a combination of loans and other forms of aid. Your school’s financial aid office will determine how much of each type you are eligible to receive.

The government guarantees and even funds some student loan programs. These loans may only be used to cover education-related expenses such a tuition, room and board, travel, and books and supplies.

Yes, in essence a Student Loan is a form of Financial Aid. The term Financial Aid is very broad and relates to "any" form of payment be it, granted or loaned to pay for Education.


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