Unlike loans, grants are need-based types of financial aid that don’t need to be repaid. Depending on your financial situation, you may qualify for a Pell Grant. These are for undergraduate students and are based on the family’s ability to contribute. The Pell Grant is a “foundation source” for all other need-based programs. No other grants, loans, or work-study programs are awarded until a student’s eligibility for the Pell Grant is determined.