Cost & Financial Aid 101

How Does Financial Aid Work?

Different types of aid are provided through various sources, such as federal and state agencies, the University, high schools, foundations, organizations and corporations. The amout of aid a student receives depends on federal, state and institutional guidelines.

Students have the choice to accept or reject the aid offer. The type of aid determines whether it will have to be paid back or not.

What is Included in the Cost of College?

College costs include more than tuition and living expenses. Here are some common costs for UofL students:

• Tuition - the cost of taking courses and earning your degree;
• Fees - expenses like technology fee, medical fee, recreation fee, parking fee, etc;
• Food and housing (living expenses) - housing costs for living on campus and food costs using meal plans and typical grocery costs; 
• Books and school supplies - it is often require to purchase, rent, or borrow specific textbooks for the courses you take. Books can be expensive so it is important to prepare for these extra costs. Other school supplies students often use are backpacks, notebooks, pens and pencils, desk accessories (folders, binders), etc;
• Transportation - cost associated with commuting to school (if you live off-campus) or around campuses. Other cost traveling to a job or around the city;
• Personal expenses - necessities beyond tuition and fees, room and board, books and supplies, and transportation. This could include laundry, cell phone service, clothing, prescriptions, recreation and more.

How Much Financial Aid Will I Get?

How much money you receive towards college will vary. The most important financial aid form is the Free Application for Federal Student Aid (FAFSA). This form is used primarily to determine the financial aid you are eligible to receive from the federal government, but UofL also relies on it to determine what other UofL aid you might be eligible for. On top of filling out the FAFSA, we also recommend looking into other scholarships in your college or department and any other oustide associations, organizations, or corporations that award scholarships.

Which Form of Financial Aid is Best?

Not all financial aid is created equal, so you should know which types of aid you would like to apply for and accept. There are four forms of financial aid:

• Gift aid - money you do not have to pay back. This includes scholarships and grants;
• Earned aid - money you earn by working at a work-study job;
• Borrowed federal aid - money you borrow from the Department of Education that you pay back with interest. Federal student loan borrowers have access to income-driven repayment plans (which can lower your monthly payments), and forgiveness plans (which can offer loan relief after you make qualifying payments for a certain amount of time);
• Borrowed private aid - money you borrow from a bank that you pay back with interest. Your interest rate typically depends on your credit score and other details about your finances. Private loans do not offer as many flexible repayment options as federal loans, and private lenders do not have forgiveness plans.