The Pell Grant is the largest federal grant program offered that is designed to assist students from low-income households. A Federal Pell Grant, unlike a loan, does not have to be repaid, except under certain circumstances. To qualify for a Pell Grant, a student must demonstrate financial need through the Free Application for Federal Student Financial Aid (FAFSA®) form.

The Pell Grant

Federal Direct Subsidized loans are available to undergraduate students with financial need. The interest is paid by the federal government while students are in school. Interest begins accruing at the time students cease full-time enrollment. Regular payments begin six months after the student ceases enrollment. A fixed interest rate is established annually by the U.S. Department of Education.

Federal Subsidized Loan

Note First-time borrowers may not receive this type of loan for more than 150 percent of the length of their program of study; U.S. Department of Education may stop paying interest if student who received Direct Subsidized Loans for the maximum period continues enrollment. Loans for students who have exceeded the maximum eligibility period could begin to accrue interest after the student exceeds the 150% limit. Interest accrued in such a manner accumulates and is added to the principal amount of the loan. For more information please see your Financial Aid Officer or visit: 
https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized

Unsubsidized Direct loans are available for students to borrow for additional education costs. With the exception of demonstrating financial need and undergraduate status, borrowers must meet all eligibility criteria of the Federal Subsidized Direct loan program. Interest payments begin immediately after the loan is fully disbursed or may be added to the principal balance. Generally, you may choose to make interest payments on the loan while you are in school or have the interest added to your principal balance (capitalized) when your repayment schedule begins. Regular payments begin six months after the student ceases enrollment. Interest rates are fixed and established annually by the U.S. Department of Education.

Federal Unsubsidized Loan

Federal Parent Loans for undergraduate students provide additional funds for credit-worthy parents to help pay for students’ educational expenses. If a parent has no credit or a poor credit history, he/she may still qualify for a loan by applying with a credit-worthy endorser. They can be combined with other financial aid resources and cannot exceed the student’s cost of education. Interest rates are fixed and established annually by the U.S. Department of Education. Repayment begins immediately after the loan is fully disbursed.

Federal Parent Plus Loan