What Exactly Is Federal Student Aid

Q: What exactly is Federal Student Aid? I am getting ready to apply to colleges, and am having a hard time finding the answer to this. Does it just mean government or federal student loans?

A:The term Federal Student Aid does not just apply to federal student loans, although federal student loans are part of it. Federal Student Aid is made up of:

1. Student Loans (which you will be reasonable for paying back with interest)
2. Grants (which unlike student loans do not have to be repaid)
3. Work Study Program (where you earn money towards your education)

Students can apply for Federal Student Aid for college by filing a Free Application For Federal Student Aid (FAFSA). The amount of money a student receives though Federal Financial Aid Programs is determined by calculating the students financial need. Students may qualify for federal student loans, federal grants, or a combination of both. All students in need of money for college should file a FAFSA, even if they believe or are told that they will not qualify. The truth is that, most students who apply for FAFSA will at least qualify for some amount in federal student loans for college. The federal student loan programs offer some of the cheapest student loans for college, and unlike private student loans for college (low fixed interest rates, with flexible repayment plans), they are not based upon the borrowers credit.