A variety of student aid sources are available to help students pay for postsecondary education. Federal Student Aid offers three types of financial aid: grants, loans, and work-study
Grants: Financial aid that generally doesn’t have to be repaid.
Loans: Borrowed money for college or career school; your loans must be repaid with interest.
Work-Study: A federal work program through which undergraduates and graduate students at participating schools earn money to help pay for school.