Financial Aid Terminology Lackawanna College
If you’re applying for financial aid for the first time, you may encounter a number of words or phrases that are very easy to confuse. At Lackawanna College, we want to make financial aid as easy to understand as possible. So, here’s an overview of three of the most often confused terms and how they affect your student aid.
Loans – a loan is part of financial aid that will require repayment upon graduation or the withdrawal of a student from a college or university. A student may seek out a loan if they have a balance left to pay on their account after all of their financial aid is applied.
There are several common types of federal loans. Direct subsidized loans are made to eligible undergrad students, who demonstrate financial need to help cover the cost of their education. Direct unsubsidized loans are loans made to eligible undergraduate, graduate, and professional students, but eligibility is not based on financial need. Finally, direct plus loans are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for their education. Eligibility is not based on financial need but a credit check is required.
You may also require alternative loans to pay for your college education. Alternative loans are available from such agencies including Sallie Mae, Discover, PNC Bank, and Sun Trust. Students may also check with their personal banking institutions to see if these types of loans are available.
Grants – a grant is a form of financial aid that does not have to be paid back and it’s awarded to students who demonstrate financial need. Grants are essentially free money towards your college education. Some grants include the Federal Pell grant and the Pennsylvania State grant. Each of these grants could be worth thousands of dollars towards your college education. These are based on financial need.
If you’re attending a college or university and more than 50 percent of your courses are online your grant eligibility may be affected. Please reach out to your financial aid department for more information.
Additional grants may include out-of-state grants from the state where you currently live, a Federal Supplemental Educational Opportunity grant that could be worth up to $600, or a Lackawanna College grant that may be valued at up to $3500 dollars.
Scholorships – A scholarship is financial support that’s awarded to a student based on their academic achievement or other criteria. It’s similar to a grant because it does not have to be repaid. Scholarships may be awarded from outside sources along with internal funds provided by your college or university. Many colleges have a variety of internal scholarships. These include athletic scholarships for student athletes, academic scholarships awarded based on a student’s GPA or SAT scores, or a series of privately endowed scholarships that students may apply for.
A few examples are Lackawanna College’s Honors Scholarship and our Dual Enrollment Scholarship. Our Honors Scholarship rewards the top 10 graduating seniors from local high schools with a full tuition award after aid for choosing Lackawanna College. Half tuition scholarships after aid are provided to high school students whose class rank is from 11 to 20.
The Dual Enrollment Scholarship rewards students who’ve made an early commitment to their college education. We will provide our Dual Enrollment students with a scholarship equal to the amount of their existing college investment for each year that they attend Lackawanna College.
A scholarship review committee normally awards private scholarships. There are also a number of Bachelor’s Degree scholarships awarded to students who earn their Associate Degree at Lackawanna College and continue with us to pursue an advanced degree. Additional external scholarships are awarded to students from outside sources such as faith-based organizations, employers civic groups, and more.
If you are still confused about some of the terms and phrases used in the financial aid process reach out to the Lackawanna College financial aid office at 570-961-7859 and we’ll help you with any questions that you might have you.