A Pell Grant is a type of financial aid provided by the government to help students pay for college tuition and expenses. The government awards a Pell Grant based on exceptional financial need, and unlike student loans, students do not need to repay it.

Federal Direct Subsidized loans are available to undergraduate students with financial need. The interest is paid by the federal government while students are in school. Interest begins accruing at the time students cease full-time enrollment. Regular payments begin six months after the student ceases enrollment. A fixed interest rate is established annually by the U.S. Department of Education.

Unsubsidized Direct loans are available for students to borrow for additional education costs. With the exception of demonstrating financial need and undergraduate status, borrowers must meet all eligibility criteria of the Federal Subsidized Direct loan program. Interest payments begin immediately after the loan is fully disbursed or may be added to the principal balance. Generally, you may choose to make interest payments on the loan while you are in school or have the interest added to your principal balance (capitalized) when your repayment schedule begins. Regular payments begin six months after the student ceases enrollment. Interest rates are fixed and established annually by the U.S. Department of Education.

Federal Parent Loans for undergraduate students provide additional funds for credit-worthy parents to help pay for students’ educational expenses. If a parent has no credit or a poor credit history, he/she may still qualify for a loan by applying with a credit-worthy endorser. They can be combined with other financial aid resources and cannot exceed the student’s cost of education. Interest rates are fixed and established annually by the U.S. Department of Education. Repayment begins immediately after the loan is fully disbursed.