Some aid programs, such as Federal Pell Grants, are offered directly to students by the federal government. Others are administered by the schools and colleges (Federal SEOG, Federal College Work-Study, and Federal Perkins Loans).

To receive federal financial aid, students must be a U.S. citizen or eligible noncitizen enrolled in an eligible program at a participating institution and making satisfactory academic progress.

An educational loan is a serious commitment. Federal student loans must be paid back with interest and borrowers must make payments until the loan is fully repaid. Student loans are made by banks, savings and loan associations, and credit unions. Federal Direct Student Loans are made by schools. The federal government runs two major loan programs for education: the Federal family Education Loan Program and the Direct Loan Program, both offer subsidized and unsubsidized loans. And PLUS loans for parents. The main difference between the two programs is the source of loan funds. Both programs offer the same loan limits and deferment and cancellation benefits. Loan repayment options for the two programs differ slightly. Some colleges offer both programs, but you may borrow under only one program at a time.