One type of Title IV loan is the Unsubsidized Federal Stafford loan. This loan offers a low fixed interest rate for the life of the loan. No payments are required while students remain enrolled at least half time. Payments are a requirement six months after graduation or after your status drops below half time. This federally guaranteed loan does not have a basis on the financial needs of the student, unlike other types of federal loans. The loan may is obtainable for undergraduate or graduate education.
Federal Pell Grants are another option for postsecondary education funding. This program does use financial need to determine who will obtain the limited grants available. The program is specifically designed for low income undergraduate and some post baccalaureate students. Pell grants are not loans specifically since they do not need repaid. They still fall under the term Title IV aid.
Federal Perkins loans also are Title IV loans. These loans are campus based programs because the aid comes from the participating school. Financial need is the determining factor for who qualifies for these loans. The federal funds go to the school, which then determines the most financially in need students to disperse funds.
The Federal Supplement Education Opportunity Grant is a type of Title IV aid. This grant has a design for those with exceptional financial need. These grants do not need to be repaid. Stipends of $100 up to $4000 per year go to students who qualify for the program. Not all schools participate in this type of campus based funding. Eligibility also is determined based on your ability to qualify for other types of student loans and grants.
Federal PLUS loans are Title IV loans for parents rather than students. Students must be undergraduates. Lending criteria has a basis on need and credit rating. The limit on these loans is equal to the cost of attendance at the school minus any other financial aid received. These loans are low cost, fixed rate loans. The parent, rather than the student, is responsible for repayment of the funds.