College costs can feel overwhelming, especially when no one has explained how financial aid actually works. This guide breaks down grants, scholarships, FAFSA, and aid letters in clear, simple terms so you can make informed decisions with confidence.
This guide is for first-generation college students who are navigating financial aid for the first time.
If you’re unsure how college is paid for, what aid you qualify for, or how to read an aid offer, this guide is designed to help — without assuming prior knowledge.
Most students don’t pay for college with one single source of money.
College is usually paid for through a combination of:
Understanding the difference between these is the first step toward making smart financial decisions.
Grants are typically based on financial need and do not need to be repaid.
They often come from:
Grants are one of the most important sources of aid for first-generation students.
Scholarships are free money, but they usually require an application.
They may be based on:
Some scholarships are one-time awards, while others renew each year.
→ Explore scholarships for first-generation students
The FAFSA (Free Application for Federal Student Aid) is the form colleges use to determine eligibility for grants, loans, and some scholarships.
Important things to know:
Filing FAFSA does not mean you’re committing to loans, it simply keeps options open. Every student should fill it out.
Loans help cover remaining costs but must be paid back after school.
Understanding how much you’re borrowing and the repayment terms of crucial.
After you apply, colleges send a financial aid offer (sometimes called an award letter).
These letters show:
Aid letters can look confusing, but learning how to read them helps you compare schools accurately.
Two colleges can offer very different aid packages — even with the same FAFSA.
That’s because:
This is why comparing aid offers matters more than sticker price alone.
You are allowed to ask questions and you should.
Financial aid offices can help explain:
Asking for clarification isn’t a mistake — it’s part of the process.
Tuition Covered helps make financial aid clearer and easier to compare.
You can:
If financial aid feels overwhelming:
Many first-generation students qualify for need-based aid, grants, and scholarships, but eligibility varies.
Some scholarships require FAFSA, while others don’t. Filing FAFSA keeps more options open.
In some cases, yes — especially if your financial situation has changed.
Financial aid exists to help cover costs when family contributions aren’t possible.