The Overview of the Financial Aid System diagram summarizes how a student’s financial aid eligibility is assessed (need analysis) and how grants and loans are packaged. A student applying to college faces expenses for tuition, fees, books, and living expenses. Depending on where the student wants to enroll and the family’s financial resources, the student may be able to receive financial aid to help cover these expenses. In awarding aid, institutions typically first package any grants for which the student is eligible and then offer loans (although some institutional grant aid may be awarded after loans are packaged). If the student has financial need after grants, at least some of the loans may be subsidized (i.e., the federal government pays the interest while the student is enrolled).