Financial aid is money that is either borrowed or lent to you to pay for college and may include loans, scholarships and grants.

A loan is money that is borrowed. You have to pay back loans with interest, and if you get behind on paying back the loans, it will likely hurt your credit rating, which will hurt your ability to get a job, apartment, and of course, more credit. Also, in many cases, your tax refund will be sent to whomever holds your loan if you are behind on loan payments.

The most common type of loan is the Federal Perkins Loan. Interest rates on these loans are fairly low, and you have up to 10 years to repay it, beginning when you drop to below half-time enrollment status.

Grants and scholarships generally only have to be repaid if you drop out of school during the time that you are covered by the grant or scholarship. The most popular federal grant is the Pell Grant, the amount of which is determined after you have submitted the FAFSA. There are also private grants and scholarships based on need, merit, or other specific characteristics like major.

Receiving a grant or scholarship is usually an honor that should be noted on your resume. Having worked on scholarship award committees, I’ve seen where once a student has been awarded a scholarship, the committee gives them the benefit of the doubt on additional scholarships. So, research and apply for scholarships regularly – looking for scholarship opportunities should be a habit! Start with the Stetson financial planning portal and expand by asking parents, friends and organizations to which you have belonged where other opportunities may be.

Valrie Chambers, Ph.D., professor of accounting, and Betty Thorne, Ph.D., professor of statistics and the Christian R. Lindback Chair of Business Administration, write Financial Fridays to bolster students’ financial wellness including preventing financial mistakes, safeguarding their assets and identity, and thinking critically about financial decisions.