The federal government generally awards financial aid grants to students from low- and moderate-income families. The largest federal grant program is the Federal Pell Grant Program. This program provided $179 million to 80,300 undergraduates attending Minnesota schools of higher education in Fiscal Year 2007.

The government also offers loans to help students pay for their higher education. These programs allow students to pay part of the price of their education with future income. The largest of the federal loan programs are the Federal Stafford and the Federal Direct Loan Programs.

The federal government also subsidizes work study jobs at various colleges and universities. About 12,800 students at Minnesota schools earned $19.6 million in federal work study jobs in Fiscal Year 2007.