Federal student aid comes from the federal government—specifically, the U.S. Department of Education. It’s money that helps you pay for education expenses at a college, career school, or graduate school. Federal student aid covers such expenses as tuition and fees**, room and board, books and supplies, and transportation. Aid can also help pay for a computer and for dependent care. The three main categories of federal student aid are:
Grants: Grant money usually doesn’t have to be repaid. Most federal grants are based on the student’s financial needs.
Work-study: Work-study money is earned by a student through a part-time job on or near campus while attending school.
Loans: A loan is borrowed money that must be repaid with interest.
For details about federal student aid programs, including maximum annual amounts and loan interest rates, visit studentaid.gov/types.
