There are three types of federal student financial aid:
- Grants — This type of financial aid does not have to be repaid (unless you leave school and owe a refund).
- Loans — This is money for school that you borrow. Loans almost always have to be repaid with interest.
- Work-Study — This is money you earn by working in a job that qualifies for work study. Your college will help you coordinate your work study arrangement, and most work-study jobs are on campus.