Financial aid is money that can help students pay for college or career school, and it can come from federal and state governments, colleges and universities, and private organizations. You can received need-based financial aid and merit-based financial aid. There are three main types of financial aid for students:
Visit our Financial Aid Applications page to learn about applying for financial aid for students, and pay close attention to financial aid deadlines.
Grants and Scholarships
Grants and scholarships are types of “gift aid” or free money, which means they do not have to be repaid. They are available through federal and state governments, colleges and universities, and local and national private organizations. There are two main categories:
- Need-based: awarded by the financial aid office based on a family’s financial need, as calculated by the Student Aid Index (SAI)
- Merit-based: awarded, usually by the admissions office, based on the student’s academic prowess, athletic ability, or artistic/musical talent
The college financial aid office will determine your eligibility for grants and scholarships that come from the federal and state governments and from the school itself after you submit your admissions and financial aid applications. You’ll need to seek out scholarships from private organizations yourself, and each one will require its own application. Learn more about private scholarships.
Here are common types of aid in the grants and scholarships category:
Federal Pell Grant
A Federal Pell Grant is given to undergraduate students with high financial need.
Federal Supplemental Educational Opportunity Grant (FSEOG)
The Federal Supplemental Educational Opportunity Grant (FSEOG) is given to undergraduate students with exceptional financial need (StudentAid.gov). Colleges with FSEOG funding determine which students receive the grant, as well as the amount received. Not every college has FSEOG funding.
Teacher Education Assistance for College and Higher Education (TEACH) Grant
The Teacher Education Assistance for College and Higher Education (TEACH) Grant is a federal grant that provides up to $4,000 per year to students who agree to teach for four years at an elementary school, secondary school, or educational service agency that serves students from low-income families and to meet other requirements. If the service obligation is not met, the grant is converted to a Direct Unsubsidized Loan (StudentAid.gov).
Massachusetts John and Abigail Adams Scholarship
The Massachusetts John and Abigail Adams Scholarship provides a tuition waiver for up to eight semesters of undergraduate education at any of the 29 public colleges and universities in Massachusetts, including all community colleges and UMass schools. The scholarship covers tuition only; fees and food and housing are not included. The tuition waiver at University of Massachusetts campuses only covers a portion of tuition. Check with each campus for exact amounts. The scholarship must be used within six years of a student’s high school graduation.
Other Massachusetts State Aid
You can also visit the Massachusetts Office of Student Financial Assistance (OSFA) website at osfa.mass.edu to learn more about other Massachusetts state aid, including the MASSGrant, Gilbert Grant, and more.
College and University Grants and Scholarships
College and university grants and scholarships are types of financial aid provided directly by colleges and universities.
Federal Work-Study
Federal work-study allows students to work part time on or near campus while in college. Students are paid work-study funds throughout the academic year for the hours that they work, and they can use the earnings for living expenses, books and supplies, and other indirect education expenses. Work-study earnings are taxable, but they are excluded from the student’s total income within the financial aid calculation.
Federal and State Loans
Student loans are sums of money that help students pay their college expenses and must be repaid. There are a few different student loans provided by the U.S. federal and Massachusetts governments.
Federal Direct Student Loan
Every eligible student who submits a FAFSA® is qualified to receive a Federal Direct Student Loan. You should borrow a Federal Direct Student Loan before you borrow any other loan because these loans offer fixed interest rates and several repayment options. This loan does not require a credit check and the student is the sole borrower. The current maximum Federal Direct Student Loan amounts are as follows for undergraduate students. Graduate student limits are larger and can be found here.
- $5,500 for freshman year
- $6,500 for sophomore year
- $7,500 for junior year
- $7,500 for senior year
The interest rate on the Federal Direct Loan is fixed for the life of the loan, though each academic year’s new loans have a new interest rate determined by the 10-year Treasury note rate and an additional percentage. The loan is always unsubsidized for graduate students, but can be either subsidized or unsubsidized for undergraduate students:
- Subsidized: Need-based aid, for which the federal government pays the interest while the student is in school.
- Unsubsidized: Not need-based, and available to anyone who files the FAFSA. The student may choose to pay the interest while enrolled or defer the interest and add it to the principal amount of the loan upon leaving school.
Massachusetts No Interest Loan (NIL)
The Commonwealth of Massachusetts offers the Massachusetts No Interest Loan (NIL), a loan with zero interest and created to help needy Massachusetts residents attending post-secondary educational institutions in Massachusetts pay for educational costs.
