Federal student loans must be repaid with interest. Direct Stafford subsidized loans are designed for students with financial need. Interest on the loan does not accrue while the student attends school at least half-time or during grace or deferment periods. Financial hardship is not a requirement for a Direct Stafford unsubsidized loan. Interest accumulates as soon as the student gets the money. The loan amount in both cases is based on information on the FAFSA provided by the student. Direct Plus loans assist parents and graduate students. Direct Consolidation Loans allow borrowers to combine education loans.
Students receiving federal grants do not pay them back. The Federal Pell Grant and the Federal Supplemental Education Opportunity Grant are awarded to students with financial need. The dollar amount is based on information provided in the FAFSA. The Teacher Education Assistance for College and Higher Education Grant Program awards grants to students planning to teach in an elementary or secondary school that serves financially disadvantaged students. The Iraq and Afghanistan Service Grant assists students who lost a guardian or parent to war.
Federal work-study programs allow students to earn money for educational needs. They are administered by the financial aid offices at participating colleges. The program encourages qualifying undergraduate and graduate students with financial need to complete a work study assignment in their field of study at the community level.
Applicants for federal student aid must be U.S. citizens, or eligible non-citizens, with a social security number. Those applying must possess a high school diploma or General Education Development (GED) certificate. Males between the ages of 18 to 25 must be registered with Selective Service. Applicants are not eligible if they owe a refund on a federal grant or are in default on a federal education loan. Students must show financial need to qualify for all loans except unsubsidized Stafford Loans.