Foundations of Financial Aid: Grants, Scholarships, and Student Loans Explained

Financial aid is one of the highest-stakes decisions a family makes, yet most students arrive at it with little understanding of the underlying system. They confuse subsidized and unsubsidized loans, mix up merit and need-based aid, and underestimate how interest reshapes the real cost of an education. This foundational course explains the system clearly. By the end of this course you will be able to describe the major sources of financial aid, distinguish gift aid from self-help aid, read a financial aid award letter accurately, and project the real total cost of a degree under different funding mixes. What you will learn: - The four categories of aid: federal grants, scholarships, work-study, and student loans - How need-based aid is calculated using student and parent financial information - The difference between subsidized and unsubsidized federal loans, and how interest accrues during school - How private loans compare to federal loans on rates, repayment options, and protections - How to read an award letter and translate it into actual out-of-pocket cost - How to estimate total borrowed amount, monthly payment, and lifetime interest - The trade-offs between merit aid at a less-selective school and need aid at a more-selective one The course uses readings, sample award letters, and calculation exercises. Each module ends with a worked example so you can compare it against your own situation. This course is written for students approaching college decisions and the families who support them. No financial background is required. By the end you will read any financial aid offer with confidence and project the real long-term cost of each option rather than focusing only on the first-year sticker price.