Financial aid is money in the form of loans, grants and employment that is available to students to help pay the cost of attending a college, university or vocational/technical school. Financial aid comes from the federal government, which is the largest provider of aid, as well as state governments, school, and a variety of other public and private sources.
There are two main types of aid:

• MERIT-BASED AID is given to students who have a special characteristic, skill, talent or ability. A scholarship is an example of merit-based aid. Merit-based aid is usually a gift that does not have to be paid back, although a student who receives merit money may have to promise to teach or perform some other service when they complete school.
• NEED-BASED AID is given to students who can show they need financial assistance to pursue a college education by completing the FAFSA. Most financial aid is awarded on the basis of need.

There are three kinds of need-based aid:

• Grants are gifts that do not have to be paid back. Federal programs include the Federal Pell Grant and Federal Supplemental Educational Opportunity Grant (FESEOG). The Pell grant annual awards will range from $400 to $4310 (subject to change year to year), and is prorated according to enrollment status. Less than half time students may be eligible for the Pell Grant. The FSEOG program is designed to help student with exceptional financial need. Exceptional need is determined by estimated family contribution found on the Student Aid Report (EFC=0). The Financial Aid Office determines the amount of the grant.
• Loans are borrowed money that has to be paid back over a period of time, usually after the student leaves school. Federal loan programs include the Federal Perkins Loan and the Federal Family Education Loan (FFEL). FFEL loans are obtained from financial institutions such as banks, or credit unions, and include subsidized and unsubsidized Federal Stafford Loans and Federal PLUS loans. Student loans must be awarded and certified by the Financial Aid Office before a bank will certify the loan. First-time student borrowers must complete the entrance counseling session before the loans will be disbursed, even if a loan was received at another institution.  First-time entering freshmen student loans are disbursed 30 days after the first day of the semester.
  It is very important to remember that the disbursement date on the notice you receive from your lender is the date the funds are sent to the school. The loan check will not be ready for pickup on this date. The checks will be ready for release three to five days after the date the school receives the check. Student loan borrowers are also required to complete an exit counseling session upon graduation or when the student ceases to be enrolled in at least 6 credit hours.
  For more information about student loans, please refer to The Guide to Federal Student Aid published by the Department of Education. You will find important information regarding repayments, rights and responsibilities, and example of monthly payment amounts, deferments, forbearance and consolidating loans.
• Work-Study is money that student must earn by working a part-time job up to 20 hours per week. Funds used to pay the major portion of a work-study student's earnings come from the Federal Work-Study Program or the New Mexico Work-Study Program.