If the cost of college and graduate school seems to be rising as quickly as summer temperatures, it may be time to look into the funding sources that could help you finance your postsecondary education. To help families sort through the financial aid maze, NextStudent, a leading Phoenix-based education funding company, offers students and parents this quick guide to the types of financial aid options that are out there.

It starts with financial need.

Financial aid can be classified into two main categories: need-based and non–need-based. Need-based aid is awarded on the basis of financial need , a federal determination of a student’s financial situation, using the financial information you provide each year on the FAFSA (Free Application for Federal Student Aid). Non–need-based aid is awarded without consideration given to a student’s financial situation. If you meet program eligibility requirements, you can qualify for non–need-based aid, regardless of your or your parents’ assets or income.

There is such a thing as free money.

Scholarships and grants are a great way to help finance your college education because they provide money for school that you won’t have to pay back—it’s basically free money. Scholarships and grants can be either need-based or non–need-based.

Federal Pell Grants are an example of need-based grants. Non–need-based scholarships and grants include merit-based awards. Some merit-based scholarships may be awarded automatically with your admission; others require you to complete an application process and compete against other applicants.

There are millions of dollars in college scholarships available every year. You can start looking by raiding the NextStudent Scholarship Search Engine, a database of over 5.9 million scholarships worth over $16 billion.

Federal student loans offer low-cost financial help.