The types of financial aid considered "free money" are primarily scholarships and grants. These forms of aid do not have to be repaid, unlike loans, and are sometimes called "gift aid." Scholarships are often awarded based on merit, talent, or need, while grants are usually need-based and provided by the government, colleges, or private organizations. Examples include Federal Pell Grants and merit-based scholarships. Other types of aid such as loans must be repaid, and work-study requires earning money through a job, so they are not considered free money.