Stafford Loan Vs Pell Grant| Student Financial Aid

Stafford Loan Vs Pell Grant| Student Financial Aid

College is undeniably expensive but most universities and community colleges provide financial aid packages that contain a combination of scholarships, grants, and loans thanks to government financing. 

All college students who meet the basic requirements can apply for federal Pell Grants and Stafford Loans. 

To apply for federal financial aid, students must complete the Free Application for Federal Student Aid (FAFSA).

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What Is Stafford Loan?

Stafford loans are federal, fixed-rate student loans offered to undergraduate, graduate, and professional students enrolled at least half-time at a college or university.

These loans, also known as direct loans, are made available through the William D. Ford Federal Direct Loan Program and are meant to supplement current personal and family resources for higher education costs, such as scholarships, grants, and work-study.

Federal direct loans can be used to cover educational costs such as tuition, lodging and board, books, and other educational expenses.

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What Is Pell Grant?

The Pell grant is a type of need-based federal financial aid that does not normally have to be repaid, making it extremely attractive. 

It is given by the United States Department of Education to qualified low-income students to assist them to pay for college expenditures such as tuition, fees, room and board, and other educational expenses.

A number of prerequisites must be met in order to be eligible for this grant.

Pell grants are usually awarded to undergraduate students, however, some students enrolled in post-baccalaureate teacher certification programs may also be eligible. Your grant amount will vary depending on your income, the number of years you stay in school, the cost of attendance at your college or university, and the number of credits you take each year.

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Difference Between Stafford Loan And Pell Grant

The main difference between Stafford loan and Pell grant is that Pell grant are not required to be returned, they are essentially the government’s means of providing students in need with a tuition cut. Accept a federal Pell grant if one is offered to you.

Borrowers must, however, begin repaying Stafford loans six months after dropping below half-time attendance, regardless of whether or not they received a degree.

The federal government provides a variety of repayment alternatives, including a 10-year repayment plan and multiple plans that base monthly payments on the borrower’s annual income.

Is it possible to get a Pell Grant and a Stafford loan at the same time?

Yes, it is possible. There are two federal programs, one is a grant and the other is a loan, however, both can help qualified students afford a college education. Don’t be concerned if you received a Pell grant as well as a Stafford loan, the two do not cancel each other out, so applying for both is a good idea.

Originally posted on February 19, 2022 @ 10:48 pm