Tag Archives: federal student aid

There are six federal student aid programs you should definitely know about. They include the following: Federal Pell Grants This is need-based financial aid. The amount of student aid you receive will depend largely on how much it costs to attend the school of your choice. The money for the Federal Pell Grant comes to the school, which then delivers it to you. If you are eligible for this form of student aid, you will receive it regardless of how many other students at the same school also show need for this type of student aid. Federal Stafford Loan There are two types of Federal Stafford Loans: subsidized and unsubsidized. The principal balance on these loans are deferred until 6 months after you are out of school. The primary difference between these two is who pays the interest on the loan while you enrolled in school and during grace and deferment periods. An unsubsidized loan is not based on how much financial aid you need. If you take out an unsubsidized Federal Stafford Loan, you are responsible for the interest that accrues from the time you borrow the loan and the time of repayment. This interest can be capitalized, which … Continue reading