The application process is the set of steps you’ll need to complete to be considered for a scholarship, loan forgiveness program or other opportunity.

An application process usually involves a form or collection of forms. Many applications require other materials as well, such as a personal statement or essay response, recommendation letters, school transcripts or other documents.

Eligibility refers to the basic criteria you must meet to be able to apply for a financial aid opportunity, such as a scholarship, grant, internship or loan forgiveness program. 

Financial aid opportunities all have their own eligibility requirements. Some common eligibility criteria include GPA, work experience, age or racial or gender identity.

The Free Application for Federal Student Aid, or FAFSA, lets you receive need-based financial aid from the federal government—usually in the form of grants or loans. The FAFSA requires personal and income information to determine your financial aid award. 

Most colleges and universities also use the FAFSA to determine their financial aid awards, so it’s important to fill it out!

A grant is free money you don’t need to repay! Grants generally come from the federal or state government (like the Pell Grant), or from local organizations or universities. You get automatically considered for most grants when you fill out the FAFSA. 

Grants are often awarded based on income or family size, but some grant providers have other specific eligibility requirements. Ask your program’s financial aid office if there are any other forms you need to fill out.

A loan is a sum of money you can use to help pay for your education. You will need to pay back your loan with interest after you graduate.  

Many students first take loans from the federal government, because interest rates tend to be lower. (You’ll need to fill out the FAFSA to get a loan offer.) You might take out private loans from a bank or another provider if you max out on federal loans and still need additional funds.

Loan forgiveness (sometimes called loan cancellation) means you won’t have to pay back some or all of your student loans. In exchange for forgiven loans, you’ll commit to teaching for a set period of time—often in a high-need geographic or subject area.

Loan forgiveness can cover substantial amounts of money! That said, loan forgiveness programs vary. Make sure you understand the specific types of loans and amounts that can be forgiven, as well as any teaching commitments you’ll need to fulfill.

Like a grant, a scholarship is money you don’t need to repay! Scholarships can come from the federal or state government, your college or university or outside organizations. 

Most scholarships have specific eligibility requirements, such as financial need, academic success, achievements in an area of interest, or racial or gender identity.

A stipend is a payment to help you with your education costs and living expenses. Most teaching programs don’t offer stipends—but if yours does, you can think of your stipend as a paycheck or allowance.

Unlike a scholarship or grant, you typically won’t need to use your stipend for a specific thing, like tuition. You’ll receive your payment directly and can spend it however you need! You might receive your full payment all at once, or you might receive your stipend on a biweekly or monthly basis.