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The popular Stafford Loan program, a long-time federal financial aid stalwart, has recently been changed to accommodate modern students.
Historically, campus financial aid offices worked to provide college financial aid packages that included guaranteed Stafford Loan awards.
Grants and scholarships provide assistance that is not repaid.
Generally, grants help those with the highest levels of financial need, while scholarships cover college expenses for students who exhibit high standards in academics and athletics.
As part of the Health Care and Education Reconciliation Act of 2010, Barack Obama and the 111th Congress cut out the middlemen and ended the private lender subsidy arrangement.
Campus financial aid offices match your FAFSA status with available student aid, until your college financing needs are met.
Formal financial aid offers include Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), TEACH Grants, Military Service Grants Federal Direct Student Loans and any other forms of institution-specific assistance that are available at your school.
An important distinction exists between federally issued student loans : Some are subsidized, while others are not.
Some blended hybrid-type awards consider a combination of performance and need to determine winners, so the difference between scholarships and grants is not always clear cut in black and white.
The important thing to remember about both of these coveted forms of financial aid is that you are never required to pay the money back.
Direct subsidized student loans are reserved for the neediest applicants, and interest payments are guaranteed by the Federal Government during certain periods of the life of each loan.