Your Guide to Financial Aid

Financial aid includes all assistance with paying for college such as grants, scholarships, work-study and loans.
Your Guide to Financial Aid

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Updated · 1 min read
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Written by Anna Helhoski
Senior Writer
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Edited by Des Toups
Lead Assigning Editor
Fact Checked

Applying for financial aid is the key to getting help with paying for college.

Financial aid includes free money like grants, scholarships and work-study, as well as government loans that you repay. You’re likely to end up with a combination of sources, but you should always maximize all free aid before turning to loans. If you do borrow, choose federal loans before private options.

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Financial aid: What's typical?

The type and amount of aid you receive will depend on what you’re eligible for. Here are the average amounts students receive and the percent of families using these sources, according to "How America Pays for College 2023," an annual study by Sallie Mae and market research firm Ipsos.

Source

Average amount among users

% of families using each source

Parent borrowing

Federal Parent PLUS loan

$9,134

11%

Private education loans

$5,414

9%

Home equity loan or HELOC

$3,553

6%

Credit cards

$3,289

9%

Retirement account loan

$2,762

6%

Other loans

$4,304

6%

Student borrowing

Federal student loans

$7,253

24%

Private student loans

$9,337

11%

Credit cards

$1,448

7%

Other loans

$4,275

7%

Paid by parents from

Parent current income

$10,566

58%

College savings funds, such as a 529 plan

$7,806

30%

Other savings or investments

$5,907

34%

Retirement savings withdrawal

$3,537

15%

Paid by student from

Student current income

$2,897

40%

Savings

$2,327

35%

Federal work-study

$1,821

20%

Other savings or investments

$1,923

21%

Other sources

Scholarships

$7,822

61%

Grants

$5,934

57%

To help you navigate the complicated financial aid process, we’ve chosen articles below that address typical questions students have. They’ll even explain the jargon.

Start by finding the description that best matches where you are in the financial aid journey.

You think your family’s income qualifies you for free aid

You’re not sure how grants are different from scholarships or how to get either one

You want a part-time job in college that will help pay for school

You received the Pell Grant last year

You’re not sure how much you are allowed to borrow each year

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