Stafford loans and federal grants are two unique types of educational funding offered by the United States Department of Education. By filling out a FAFSA or Free Application for Federal Student Aid, a student will be able to determine their eligibility for all types of federal aid. Some students may be able to get all of their educational expenses funded by the government, so taking a look at maximum amounts available via the Stafford Loan, Perkins Loan, ACG Grant, FSEOG, Pell Grant or the IASG is a good idea before you fill out the FAFSA.
The primary difference between federal loans such as the Stafford loan and a federal grant such as the FSEOG is that money from grants never has to be repaid. Conversely, Stafford and Perkins loans provide money for college that must eventually be repaid- usually at a very low rate of interest and spread out over as many as 30 years. The total amounts of federal financial aid for grants and loans are listed below:
Stafford Loan- This loan can be subsidized or unsubsidized. The difference is that the former features no interest accumulation while the student is still in school, while interest begins to accrue immediately with the latter type. Dependent undergraduate students can receive as much as $5500 per year while independent students can receive up to $8000.00. Professional or graduate students can be granted Stafford loans up to a maximum of $20,500 per year.
Perkins Loan- The Perkins loan provides amounts similar to the Stafford. $5500 is the maximum yearly award for both independent and dependent undergraduate students, while graduate or professional students can expect up to $8000.
ACG- The Academic Competitiveness Grant awards students who strive for and achieve academic excellence. This grant awards up to $750 for the first year of an undergraduate program and $1300 for the second year. However, limited funding has led to certain restrictions: if a large number of students apply for this grant and qualify, the total grant amount awarded to all students may be reduced if more students apply than there are yearly funds available.
FSEOG- This grant is reserved for students with significant financial need. The award can be anywhere from $100 to $4000 in a single academic year.
Pell Grant- This program is one of the most common available through the FAFSA. It is dependent upon a student’s financial need and can award up to $5500 for the school year.
IASG- The Iraq and Afghanistan Service Grant is for students who lost a parent who died while serving in the Middle East. The total amount that a student can receive is equal to the maximum amount available that year for the Pell grant.
If you’re seeking a Stafford loan, an FSEOG or any other type of federal financial aid, make sure to learn as much about them as you can before applying.
If you want to find out more and get the most aid available to you right now, click here to apply for the Federal Stafford Loan.
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