<p>I have been doing a lot of reading on Financial Aid. I am very confused.<br>
Can someone please try to explain the following to me.</p>
<li>What is a Pell Grant?</li>
<li>What is the Federal Supplemental Educational Opportunity Grant?</li>
<li>What is the Direct Stafford Student Loan?</li>
<li>What is the subsidized FFEL</li>
<li>What is the Federal Perkins Loan</li>
</ol>
<p>I understand how to apply for aid, but I am not sure what all these things are. Thank you so very much.</p>
<p>Pell grant is free money given only if you qualified by FAFSA, usually low income less than $40k, FSEOG is similar, also given mostly to people who qualified for Pell grant.
Direct Stafford Loan and federal Perkins are a low interest "good" loans you get if you low income and/ or very desirable to your school. Different schools have different amount of money in those programs/even that money given by goverment/. So it is in your interest to apply early and you do it by filing FAFSA</p>
<p>You apply for each of these by completing the FAFSA form and cannot qualify for them otherwise.</p>
<p>The Pell and SEOG (supplemental edu...) are free money that you do not have to pay back (if you qualify). Pells and SEOGs are normally reserved for those students with EFCs of $4,000 and less.</p>
<p>Stafford and Perkins loans are the most often the only loans available in the student's name alone without a cosigner. They also have the best interest rates.</p>
<p>There are two types of Stafford Loans, subsidized and unsubsidized. Subsidized Staffords have no interest and no payments due while the student is in college. Unsubs have no payments due but interest accumulates while the student is in college. The term "direct" only has to do with what channels the money goes through to get to you and has little if no bearing on your situation. Staffords can be split to a student between unsubs and subs. Their allocation is solely at the discretion of the Dept of Education. A dependent freshman can have up to $2650 in Stafford loans.</p>
<p>Perkins have no payments nor interest due while the student is in college much like the subsidized Stafford. However, the colleges have much more control over which students are awarded Perkins loans. A student can borrow up to $4,000 per year in Perkins loans.</p>
<p>These are the varying forms of federal student aid. Depending on the schools you apply to, you may be eligible for many more programs that are state and school-funded.</p>
<p>-Scott</p>
<p>this site will help to answer your questions</p>
<p><a href="http://www.finaid.org/%5B/url%5D">http://www.finaid.org/</a></p>