It covers almost everything.
You get a lump sum every quarter or semester. You use that to pay tuition, books, school supplies (stock up on jogging suits and book bags) and then the remaining amount, they send you a check for about mid term. You don't have to pay it back.
Very good source of Go-To-College-Free money. Just go to your Financial Aid Office and ask for a form to fill out. they will guide you the rest of the way. Basically, you just fill out a form, answer some questions and mail it in.