Financial aid is a loan or aid given to a student for college. First a student applies for aid at the FAFSA website...FAFSA looks at the students and parents income to determine how much money they will need for college. It will also determine if you are eligible for grants or scholarships, which you don't have to pay back. After applying for financial aid, the student will get a letter in the mail which states how much financial aid is being awarded to the student for the upcoming semesters. The student then decides if they would like to accept the entire amount or only part of it. Usually a student will get a federal Stafford loan. Once the semester begins, the money is first given to the college to cover the tuition and cost of attending, whatever is leftover is then sent to the student and is considered a "refund". Don't get confused though, this is money you have to pay back, unless it is a grant or scholarship, so try not to splurge and remember to use it for school related expenses.
