Consolidating into direct loan program
Direct subsidized student loans are reserved for the neediest applicants, and interest payments are guaranteed by the Federal Government during certain periods of the life of each loan.
Direct subsidized loan participants do not pay interest on student loans: Important change to subsidized loan repayment policy: For loans issued after July 1st, 2012, the Department of Education will not pay interest due during the six-month grace period following school.
Formal financial aid offers include Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), TEACH Grants, Military Service Grants Federal Direct Student Loans and any other forms of institution-specific assistance that are available at your school.
An important distinction exists between federally issued student loans : Some are subsidized, while others are not.
The move designates the student assistance effort as the only U. Government-backed lending program, and leaves the Federal Government as the sole administrator for Federal Direct Student Loans.
Dependent students are claimed on their parents’ income tax returns, so parental financial information is also submitted with the student’s FAFSA.
Independent students are not claimed, so applications are limited to student data.
Some blended hybrid-type awards consider a combination of performance and need to determine winners, so the difference between scholarships and grants is not always clear cut in black and white.
The important thing to remember about both of these coveted forms of financial aid is that you are never required to pay the money back.
Expected Family Contribution (EFC) is an important reference number that is submitted along with your Student Aid Report to each of the colleges you are considering attending.