I pay for half of my college, my parents pay for the other half. For the past 2 years, I have been able to pay the fees without a loan. This year I probably will have to take one.
Financial Aid is determined through
FAFSA. They look over your financial situation and your parents to determine if any aid is needed. Your school will look over this information to see what kind of aid you will need. They will usually then mail you a letter saying what kind of rewards you get, whether it's a grant or a loan. This is a good website that explains some of the different kinds of loans and ways to pay for college.
http://www.finaid.org/
Eric