Financial aid is an overarching term that refers to things like loans, scholarships, work-study programs, and grants. Unlike loans, grants and scholarships don’t need to be repaid, though scholarships are mainly given based on academic merit. Work-study requires the student to work part-time for the college or a related entity. Any financial aid you receive for college must be used for academic purposes. This includes things like tuition, room and board, and books or school fees. Student loans, on the other hand, can sometimes be used for other things not related to education. Any loan must be repaid unless the borrower qualifies for a student forgiveness program.