A big difference between the two types of assistance is the repayment requirements. Pell grants do not have to be repaid; they are a direct grant of money to the student. Stafford loans must be repaid unless the student qualifies for loan forgiveness.
Federal Pell grants are available only to low-income students. Stafford loans are available for students in almost any income range.
Pell grants are almost solely available for undergraduate students and are only available for up to four years. Stafford loans are available for undergraduate, graduate and professional students.
Subsidized Stafford loans are based on student need. While a student is in school, no interest accrues on subsidized loans. Unsubsidized loans are not based on need. Interest continues to accrue on these loans, but payment can be deferred until six months after graduation.
Both types of assistance must be applied for by completing a FAFSA. This can be completed online or in person at the college to which you will be applying. Once your application is completed and processed, you will be notified for which types of federal assistance you qualify.