Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school.
Then, is fafsa a loan?
The FAFSA is not a loan. … The FAFSA, or Free Application for Federal Student Aid, is used to apply for several types of financial aid, including grants, student employment and federal student loans. Grants are a form of gift aid, which does not need to be repaid.
In this way, is financial aid the same as student loans?
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.
What are federal student aid programs?
Federal Student Aid is responsible for managing the student financial assistance programs authorized under Title IV of the Higher Education Act of 1965. These programs provide grant, work-study, and loan funds to students attending college or career school.
Federal Student Aid offers three types of financial aid. Grants: Financial aid that generally doesn’t have to be repaid.
- lower fixed interest rates,
- flexible repayment options, and.
- many benefits that you won’t find elsewhere.
There are four types of federal student loans available:
- Direct subsidized loans.
- Direct unsubsidized loans.
- Direct PLUS loans.
- Direct consolidation loans.