Financial Aid: Money Overview
Financial aid is intended to meet the difference between what the family is judged “able to afford” and the actual cost of college. Aid comes from many sources. The sources include federal aid, state aid, loans from banks and other private lenders, college funds, private scholarships, and employer-provided assistance. Lenders provide federal education loans and their own alternative loans. State guaranty agencies process federally guaranteed education loans and provide lenders with the assurance (guaranty) that both loan principal and interest will be repaid, regardless of circumstances. Guaranty agencies are members of NCHELP (National Council of Higher Education Loan Programs).