It is true that Financial Aid Grant aid is less available to students that are attending college. You have to meet income expectations to qualify along with other federal laws defined by congress.
As a result, Federal Direct Loans are the major source for college students to utilize as financial aid. Yes, federal loans are considered a form of financial assistance to pay for college.
The reason that it is financial aid is because it is guaranteed by the federal government which is not the case with private lending where you have to get a co-signer with good credit or have good credit to get the loan yourself at a reasonable interest rate.
So, you can cover college cost with loans backed by the government at a lower interest rate.
The key to loans is to be aware of the amount you are borrowing. While interest are low, it will grow and be added to the money you owe. As a result, you will pay the amount you borrow plus the interest you accrued (applied to your loan).
If you can avoid borrowing, that would be great! It is always best to graduate from college with as little debt as possible.
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