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One is through the state and the other is through the federal government. You may want to make your question more specific (in particular, knowing which state you're talking about would help).

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Q: What is the difference between State Student Financial Aid and Federal Student Aid?
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Financial Aid Forms?

Part of applying for college and financial aid involves filling out forms. In addition to the forms needed to be accepted to a college, a student has to fill out application forms for most individual sources of financial aid. That is, each scholarship has its own application process and form to fill out and submit. One of the best known financial aid forms is the Free Application for Federal Student Aid, which is usually abbreviated "FAFSA." Anyone applying for financial aid is urged to fill out the FAFSA, even if it is suspected that the student will not receive federal financial aid. The applications are evaluated on an individual basis, and a student may be surprised to get more than he or she expected. The FAFSA is a financial aid form that takes many aspects of the applicant into consideration. From general information such as ethnic background, whether or not the applicant is a first-generation college student, and whether or not the applicant will be living on campus, to more financial-focused information such as the applicant's income and educational expenses, the FAFSA looks at the whole student and determines need based on a formula used for all applications. Usually, students fill out the FAFSA to determine whether or not they qualify for Stafford or Perkins loans or federal or state grants available to all students. The money offered from the government may affect what aid students qualify for from their individual colleges, as well as how much. The student's financial aid officer then uses the information from the FAFSA to put together a financial aid package for that student. Filling out financial aid forms can be tedious, but it is a necessary part of receiving financial assistance for a student's education. Forms like the FAFSA can help determine what and how much financial aid a student is eligible for. And if financial aid is needed, filling out the FAFSA could mean the difference between college and taking a year off to work.

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