Plan Before You Pay: What You Need to Know About Financial Aid

As you prepare for college, it is important to plan how you will pay for your education. Financial aid helps make college more affordable by helping cover the cost of tuition, fees, books, and living expenses. There are different types of financial aid, including scholarships, grants, discounts, and loans each designed to assist students based on their specific needs. Navigating financial aid might feel overwhelming but understanding your options can lift the financial burden of pursuing a college degree.

 At University of Northwestern – St. Paul (UNW), we create a customized financial aid plan for each family based on financial need and academic achievement. Your plan will fit your family’s unique financial situation. You do not need to apply for the FAFSA every year to be applicable for loans and scholarships. If you do not qualify for need-based grants, you can forgo the application. By understanding the different types of financial aid available to you––discounts, grants, scholarships, and loans––you can make informed decisions that best fit your financial situation and academic goals.

Discounts and Grants

Tuition discounts are financial gifts that a college offers to reduce the cost of tuition. You may be eligible for a special tuition discount. Discounts are awarded and distributed to students taking both full-time and part time credit loads.

Like scholarships and discounts, a grant does not have to be repaid. Grants are distributed based on financial need, which is determined by FAFSA. Northwestern offers a net price calculator tool that estimates your UNW scholarships and grants. UNW grants are another financial aid option. Northwestern only offers grants to Traditional Undergraduate students.

Scholarships

Scholarships provide free money for college and are often awarded based on academics, talent, need, or a specific area of study— the most common being merit-based and need-based. The organization or donor sets specific criteria and selects students who match their requirements.

Northwestern offers scholarships for first-time college students based on their high school GPA and transfer students who have earned college credit from a different college/university. These scholarships are both annual and renewable. 

Loans

A loan is borrowed money that must be repaid with interest. When you apply for financial aid, loans are often included in the financial aid offer. Your eligibility will vary based on your FAFSA results.

The Federal Direct Parent Loan for Undergraduate Students (PLUS) is a loan option that is non-need based and low interest for parents to help their students pay for college. The Federal Direct Subsidized Loan is awarded to students who show a need financially that is determined by FAFSA. With this loan, the government pays interest while you are enrolled in school and during a six-month grace period after leaving in-school status.

Understanding your financial aid options—scholarships, discounts, and grants—helps you create a plan that fits your needs. The more you know about these opportunities, the better prepared you’ll be to finance your education without unnecessary stress. By familiarizing yourself with the various forms of financial assistance, you can make more informed decisions that align with both your financial situation and academic goals.

Ready to explore your financial aid options at UNW? Click here to learn more!