From the Federal Student Aid website:

Federal Student Aid is responsible for managing the student financial assistance programs authorized under Title IV of the Higher Education Act of 1965. These programs provide grants, loans, and work-study funds to students attending college or career school. 

We ensure students and their families can benefit from these programs by

• informing students and families about the availability of the federal student aid programs and the process for applying for and receiving aid from those programs;
• developing the Free Application for Federal Student Aid (FAFSA^®) and processing approximately 22 million FAFSA submissions each year;
• accurately disbursing, reconciling, and accounting for all federal student aid funds that are delivered to students each year through more than 6,200 colleges and career schools;
• managing the outstanding federal student loan portfolio and securing repayment from federal student loan borrowers;
• offering free assistance to students, parents, and borrowers throughout the entire financial aid process; and
• providing oversight and monitoring of all program participants—schools, financial entities, and students— to ensure compliance with the laws, regulations, and policies governing the federal student aid programs.