Federal student aid comes from the federal government— specifically, the U.S. Department of Education. Federal student aid covers such expenses as tuition and fees, room and board, books and supplies, and transportation. 

The most common categories of federal student aid are:

• Grant—Grant money usually doesn’t have to be repaid. Most U.S. Department of Education grants are based on the student’s financial need.

• Work-study—Work-study money is earned by a student through a job on campus while attending school.

• Loan—Loan money must be repaid with interest.