The Free Application for Federal Student Aid is know as "FAFSA" and its purpose is to help those who desire to expand their Education financially. FAFSA begins its opening for application on January 1st of each year and it is known for aiding students without discriminating by gender, ethnicity, or religion. The Federal Government may help by giving grants or loans. Grants are said to be money given by the Government to the student and the student does not have to pay the money back. On the other hand loans are money given to the student by the Government and the student must pay the money back with interest. The major grants are Cal Grants and Federal Pell Grants and low interest federal student loans and federal parent loans and they are loans with the purpose to help pay the child's education. Scholarships also help pay for a students education. They are very similar to grants because they do not have to pay money back and scholarships are based on the students merit, talent, and community service. The difference from scholarships and grants is that grants have a limit to the amount of money a student may receive just like loans.