Federal student aid comes from the federal government – specifically, the U.S. Department of Education. It's money that helps a student pay for education expenses at a postsecondary school (e.g., college, vocational school, graduate school).

Federal student aid covers such expenses as tuition and fees, room and board, books and supplies, and transportation. The federal student typically comes in the form of:

• Federal Pell Grant – Grant money that usually doesn't have to be repaid. Most U.S. Department of Education grants are based on the student's financial need. For more information visit StudentAid.gov.

• Federal Student Loans – Loan money is borrowed money from the government that must be repaid with interest. For more information visit StudentAid.gov.