Whether you’re considering a baccalaureate degree in nursing or have completed your undergraduate education and are planning to attend graduate school, finding a way to pay for that education is an essential part of your planning.

The expense of attending college is considerable and is increasing each year at a rate faster than most other products and services. In fact, the cost of a nursing education at a public four-year college can be more than $14,000 per year, including tuition, fees, books, room and board, transportation, and miscellaneous expenses. The cost at a private college or university, at either the graduate or the undergraduate level, can be more than $30,000 per year.

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This is where financial aid comes in. Financial aid is money made available by the government and other sources to help students who otherwise would be unable to attend college. Almost $74 billion in aid is given or lent to students each year. Most college students in this country receive some form of aid, and all prospective students should investigate what may be available. Most of this aid is given to students because neither they nor their families have sufficient personal resources to pay for college. This type of aid is referred to as need-based aid. Recipients of need-based aid include traditional students just out of high school or college, as well as older, nontraditional students who are returning to college or graduate school.

There is also merit-based aid, which is awarded to students who display a particular talent, show extraordinary promise, or are members of groups that are underrepresented in colleges. Many colleges and graduate schools offer merit-based aid in addition to need-based aid to their students.

Types and Sources of Financial Aid

There are three types of aid—scholarships (also known as grants or gift aid), loans, and student employment (including fellowships and assistantships). Scholarships and grants are outright gifts and do not have to be repaid. Loans are borrowed money that must be repaid with interest, usually after graduation. Student employment provides jobs during the academic year for which students are paid. For graduate students, student employment also includes fellowships in which students work, receive free or reduced tuition, and are paid a stipend for living expenses.

Most of the aid available to students is need-based and comes from the federal government through six large financial aid programs (see Table 1). Two of these programs are grant-based—the Federal Pell Grants and the Federal Supplemental Educational Opportunity Grants—and are only available to undergraduate students. Three are loan programs—the Federal Perkins Loans, the Federal Family of Education Loans, and the William Ford Federal Direct Loan—that are provided to both undergraduate and graduate students. The sixth program is a student employment program called Federal Work-Study Program, which is also awarded to undergraduate and graduate students.