Overview of Financial Aid
A college education is one the most important investments a student and family can make. You and your family will be expected to contribute as much as you can from your own resources (income, savings, and assets) to help meet your college expenses.
The purpose of financial aid is to help students and families meet educational expenses that cannot be met through their own resources. Financial aid can be either need-based or non-need-based. The results of the Free Application for Federal Student Aid (FAFSA) along with the cost-of-education will determine whether a student has financial need.
There are several types of financial aid available. Grants and scholarships are considered “gift aid” because they generally do not have to be repaid. Loans and employment are considered “self-help aid” because loans have to be repaid and by working, you earn money for educational expenses. Loans are by far the largest source of financial aid for the majority of students and families. Most grants, some loans (Subsidized Stafford and the Perkins Loan), and Federal Work-Study are need-based financial aid programs. The Unsubsidized Stafford and the Parent Loan for Undergraduate Students (PLUS) are considered non-need-based. Scholarships can be based upon merit, financial need or both.
Approximately 80% of all students attending California University receive some type of financial aid. There are four main sources of financial aid. These include the federal government, the state government, and the institution and private entities. The federal government is by the far the largest source of financial aid.