As part of your financial aid package, colleges and universities may include:

Grants -- sum of money given to a student based on certain criteria for the purposes of paying at least part of the cost of college. A grant does not have to be repaid. Many grants are need-based.

Scholarships -- form of college financial aid that does not require repayment and is often made to students who show potential for distinction in their field of study. Most scholarships are based on merit or other abilities (such as athletics).

You can also go to each college's Website and research the types of scholarships and grants they offer their students.

Note: You should also become familiar with any scholarships available through your company or community -- discussed in a later section of this tutorial.

Next up? A quick overview of state sources of college funding.

Need help with any of the terms described on this page? If so, find the answers in our High School College-Bound and College Planning Glossary.