What is financial aid?
Financial aid is made up of three different but important
parts-- scholarships, grants, and federal loans.
Although each of these financial aid options
function in a different way, they
all provide single or collaborative opportunities
to assist in making your education an affordable option.
In this video, we'll explore and explain scholarships, grants,
and federal loans, as well as other, often lesser
known, financial aid options, such as private loans, Parent
PLUS loans, and Graduate PLUS loans.
Let's begin with scholarships.
Scholarships are essentially free money
from private sources, like SNHU, that
do not need to be paid back.
At SNHU, we primarily awards scholarships only
to on campus day students.
These scholarships are awarded based on academic merit
and consider such factors as incoming GPA,
extracurricular activities, and outstanding performance
in the classroom or community.
These scholarships are awarded by the on campus
undergraduate day admissions office
at the time of acceptance.
Like scholarships, grants are essentially
free money that can be awarded from either
the federal government or SNHU.
While scholarships are based on academic merit
or other qualifiers, grants are based on financial need.
SNHU only awards grants for on campus day students.
Federal grants, however, are potentially available
to all students, whether they study
on campus, at one of our academic centers, or online.
To receive consideration for a federal grant,
one must apply for federal financial aid
through what is known as the FAFSA, which
involves the completion of an online form.
We'll cover that form and how to fill it out in a later video.
Federal loans are money that is borrowed
from the federal government to help you afford your education.
Unlike scholarships and grants, money from federal loans
must be paid back.
Students can apply for federal loans by filling out the FAFSA.
Federal loans are not based on your credit score
and typically feature low fixed interest rates
and repayment plans that are often
more manageable than a private loan would be.
There are three types of federal loans--
Stafford loans, Parent PLUS loans, and Graduate PLUS loans.
For many students, scholarships, grants, and federal loans
won't cover the complete cost of their education.
In that situation, students have the option
to pay the difference via cash or check.
For many students, that may not be financially feasible.
If so, private loans, Parent PLUS loans, or Graduate PLUS
loans may be available to help.
Private loans are credit-based loans
that students apply for from a private bank.
These loans are based on your credit history.
And in some cases, you may need a co-signer,
such as a parent or spouse, to sign for the loan with you.
Unlike federal loans, the interest rates on private loans
tend to be variable, which means they can change,
and the conditions of repayment may be different,
based upon your bank's policy, as well
as your personal financial history.
Private loans are certainly an option for students.
But if you decide to pursue private loans,
we encourage you to take your time,
and be sure the loan makes financial sense
for your specific situation.
To help, SNHU provides information
on a few lenders that are available to you.
This information is available on our website.
Parent PLUS loans are credit-based federal loans
available to parents of dependent undergraduate
students and are taken out in the parent's name,
rather than the student's.
This means it is the parent's responsibility
to pay the loan back.
Parents can visit studentloans.gov
apply for Parent LUS loan.
Graduate PLUS loans are credit-based federal loans
available to students accepted specifically to graduate degree
programs and are taken out by the student themselves.
Now that we've explored the different types
of financial aid, in our next video
we'll discuss financial aid eligibility.