This study analyzed the impact of specific types of financial aid on students' college choice, with particular focus on racial differences. For overall student populations, the receipt of grants or a combination of grants with loans had a positive impact on attending first choice institutions. In contrast, having loans only had no significant impact. Going one step further, distinct patterns were found in the effects of financial aid on college choice by racial groups. White students were more likely to attend their first-choice institutions if they received grants or a combination of grants with loans. Asian American students were strongly influenced by having loans or a combination of grants with loans when they decided to attend their first choice of colleges. In contrast, college choices of Latino and African American students were not influenced by financial aid. Implications of the findings for financial aid policy are indicated and future research on the topics recommended.