The main difference between student loans and financial aid is whether or not you need to pay back the money you are given. Student loans generally require that you pay back the loan with interest, while financial aid packages like scholarships and grants typically do not need to be paid back.
Are federal student loans considered financial aid?
If you apply for financial aid, your school will likely include student loans as part of your financial aid package. It’s important to understand what types of loans you are offered. Generally, there are two types of student loans—federal and private.
What is a federal student loan called?
The federal Direct Loan program is better known as Stafford Loans. These are available to undergraduate and graduate students alike. Money for these loans comes directly from the federal government. Stafford Loans come in two types: subsidized and unsubsidized.
What are the 4 types of student loans?
There are four types of federal student loans available:
- Direct subsidized loans.
- Direct unsubsidized loans.
- Direct PLUS loans.
- Direct consolidation loans.
What are the 3 types of student loans?
There are three types of federal student loans:
- Direct Subsidized Loans.
- Direct Unsubsidized Loans.
- Direct PLUS Loans, of which there are two types: Grad PLUS Loans for graduate and professional students, as well as loans that can be issued to a student’s parents, also known as Parent PLUS Loans.
What are the three types of federal student aid?
Federal Pell Grant: For undergraduates with financial need.
Federal Student Aid offers three types of financial aid.
- Grants: Financial aid that generally doesn’t have to be repaid.
- Loans: Borrowed money for college or career school; your loans must be repaid with interest.
How do I know if I have a federal student loan?
Another way for you to determine if you have a federal loan is by accessing the National Student Loan Data System (NSLDS®) site using your FSA ID. The NSLDS site displays information on all federal loan and grant amounts, outstanding balances, loan statuses, and disbursements.
What is the average student loan debt in 2020?
Overall Average Student Debt
|Student Loans in 2020 & 2021: A Snapshot|
|30%||Percentage of college attendees taking on debt, including student loans, to pay for their education|
|$38,792||Average amount of student loan debt per borrower|
|5.7%||Percentage of student debt that was 90+ days delinquent or in default|
What are federal Stafford loans?
Federal Stafford loans, sometimes called Direct Loans, (and short-handed for subsidized and unsubsidized loans, or even sub and unsub) are a common way to help pay for college. … Stafford Loans are federal loans made by the government, meaning you’re borrowing directly from the U.S. Department of Education.