by Carlos Soto, CourseAdvisor

Federal financial aid is available in three types:

• Federally Subsidized Student Loans
• Federal Grants
• Work-Study Programs

Federally Subsidized Student Loans

Like any other kind of loan, student loans are a type of financial aid that must be repaid to the lender with interest. Student loan money must first be used to cover tuition, fees, and room and board expenses. If funds remain, you can receive them by check or cash, or you can instruct your school to hold them until later in the enrollment period. These loans cannot be cancelled because you didn’t like the education you bought with them, didn't get a job in your field of study or because of financial hardship. For this reason it is very important to think about the money you will have to repay later BEFORE taking out a loan.

The types of federal loans available to students and parents are:

• Perkins Loans
• Stafford Loans
• PLUS Loans
• Consolidation Loans

These loan programs differ mostly in their eligibility requirements, award amounts, interest rates, lender, and the length of time you're given to repay it. Read more about federal loan programs...

Grants
Grants, unlike loans, are a form of financial aid that generally doesn’t have to be repaid. Under special circumstances, such as withdrawal from school or incorrect awarding of funds, the grant must be repaid, however.

There are four types of Federal Grants:

• Pell Grants
• Federal Supplemental Educational Opportunity Grant (FSEOG)
• Academic Competitiveness Grant (ACG)
• National Science and Mathematics Access to Retain Talent Grant (National SMART Grant)

All federal grants are awarded to students with financial need. Financial need is determined using a variety of factors, including cost of attendance, expected family contribution, enrollment status, and whether you attend for a full academic year or less. Read more about federal grant programs...

Work-Study
The Federal Work Study program is designed so students with financial need can work part-time to earn money for their education. This program is available for undergraduate as well as graduate students. It’s also pretty flexible, as it is possible for full-time or part-time students to enjoy the benefits of the program.

Federal work study programs are administered by the schools that participate in it, and as such, isn’t available everywhere. As a program, it encourages community service work, although they do try to find you work related to your course of study, whenever possible. Read more about the federal work-study program...

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Source: "Funding Education Beyond High School," studentaid.ed.gov