What are the three main types of Federal Student Aid programs and how do they differ?

The three main types of Federal Student Aid programs are grants, work-study, and loans. Grants, such as Pell Grants, provide funds that do not need to be repaid and are typically based on financial need. Work-study programs offer part-time employment to students to help cover educational expenses, allowing them to earn money while studying. Loans, such as Direct Subsidized and Unsubsidized Loans, must be repaid with interest after graduation or dropping below half-time enrollment, and are also based on financial need or creditworthiness.