There are three types of federal financial aid: grants, loans, and work-study. Grants are given to students who meet a variety of requirements and do not need to be repaid. Loans are generally offered to undergraduates with financial need but are also offered to graduate and doctoral students as well as parents of undergraduates. Loans need to be paid back with interest. Work-study is the fair exchange of money for work. Students with financial need are offered work-study positions for a specified number of weekly hours and, in turn, can choose to apply their wages to tuition or keep it for other uses.