The Federal government services students who are going to college that apply for federal Aide to help pay for school. Federal aide could come in the form of loans, grants scholarships etc. By applying for federal aide if your documents that you provided does not match up to what you can qualify for free money from the government to go to help pay for school, then you and your family might not get a grant to help with school you might have to take a federal loan insted. Loans you pay back grants you don't. That's how federal aide would have an impact on you and your family