There are five main types of financial aid:

• Grants – Free money usually based on a student demonstrating financial need.
• Loans – Funding that needs to be repaid. Sometimes the student is the borrower and sometimes the parent.
• Work-Study – Funding that is earned by working at a job on campus or at a nonprofit agency in the community.
• Scholarships – Free money usually based on some criterion of merit. It may include demonstrated need as a criterion as well.
• Tuition Waivers – Funding that directly pays a percentage of a student's tuition based on meeting a qualifying condition.

The source of the funding can be the federal or state government, UM or a private organization.