NCAA Division III is the second biggest level of competition under the NCAA. These are typically, smaller private schools and are more common in the eastern part of the US. Division 3 programs typically strike an excellent balance for athletes looking to focus on academics as well as athletics. Athletes competing at the D3 level are typically not the same level as NCAA D1 and D2 athletes, but that is not always the case.
NCAA D3 schools are not allowed to offer athletic scholarships, but do offer other forms of financial aid. Coaches can put together very good financial aid packages for athletes given their families financial status and their academics. This is why if you want to play at the NCAA D3 level you need to maintain excellent grades.