How do work-study, student loans, grants, etc. work ( please give a good answer,thanks)?
I have had all but grants
Work study- The school calculates a dollar amount, this amount will equal a scholarship you have the entire year to EARN by working. Lets say the school awards you 5,000 in work study. You have an entire year to earn 5000 at your work study job. Once all your pay checks add up to 5000, your money is finished.
Doesnt effect your credit, and you do not pay this back
Student Loans- There are various types of student loans. The main thing is, this money will need to be paid back. Using info from your FAFSA the school determins how much money you need, they then divide this number equally among however many quarter/semesters you have. Usually it will automatically pay tution 1st, and any left overs are given to you.
This money must be paid back and will effect your credit
Grants- This i’ve never gotten, but it is money that is given to you, like a scholarship, and you do NOT have to pay this back! HOWEVER this WILL effect your EFC (estimated family contribution) which is calculated by your FAFSA. Because you must report grants as a “contribution” of money towards college, the school will take money AWAY from your LOAN, since loans are need based.
Grants are usually VERY need based.
Hope this helps!!! (^_^)
