Types of student financial aid Learn about the most common ways to get help paying for college and trade or career school. Options include grants, loans, scholarships, and work-study., Subsidized Loans Federal subsidized loans are low-interest loans made to students who demonstrate financial need. Undergraduates may borrow up to $3,500 for the first year, $4,500 for the second year and $5,500 for each remaining undergraduate year. Undergraduate students may borrow an aggregate limit of $23,000 in subsidized loans., FSA provides information on student financial aid opportunities such as work-study, federal loan programs, and grants., Federal Student Aid Aid is available from the federal government in the form of grants, work-study funds, and loans. Students use the Free Application for Federal Student Aid (FAFSA ®) form to apply. Besides referring your students to the information at StudentAid.gov/types to learn about federal student aid, you also can recommend they visit StudentAid.gov/resources for fact sheets, videos , Senate bill caps student loans, ends Grad PLUS, and replaces IDR plans with RAP for new borrowers, while existing borrowers must switch plans by 2028., Financial Aid Dictionary: Top Terms Related to Grants, Work-Study, and Student Loans Trying to understand all things student aid can feel overwhelming, especially if you’re not familiar with the vocabulary. We’ve got you covered with an easy-to-use financial aid dictionary that provides simple definitions of commonly used—and confused .