FAFSA Federal Aid Types and Eligibility 2 — Questions and Answers
Question 1: Who is eligible to borrow a Direct PLUS Loan?
- Undergraduate students only
- Graduate students and parents of dependent undergraduates (Correct answer)
- Any student regardless of credit
- Independent students only
Correct answer: Graduate students and parents of dependent undergraduates
Direct PLUS Loans are available to graduate/professional students and parents of dependent undergraduate students.
Question 2: What is the annual borrowing limit for a dependent freshman undergraduate for Direct Subsidized and Unsubsidized Loans combined?
- $3,500
- $5,500 (Correct answer)
- $7,500
- $9,500
Correct answer: $5,500
Dependent freshmen can borrow up to $5,500 combined in Direct Subsidized and Unsubsidized Loans per year.
Question 3: Which of the following is NOT a federal student loan program?
- Direct Subsidized Loan
- Direct Unsubsidized Loan
- Direct PLUS Loan
- Federal Sallie Mae Loan (Correct answer)
Correct answer: Federal Sallie Mae Loan
Sallie Mae is a private lender, not a federal student loan program; all Direct Loans are through the U.S. Department of Education.
Question 4: What is the aggregate (lifetime) Direct Loan limit for dependent undergraduate students?
- $23,000
- $31,000 (Correct answer)
- $57,500
- $138,500
Correct answer: $31,000
Dependent undergraduate students can borrow a maximum of $31,000 in Direct Loans over their lifetime of undergraduate study.
Question 5: To maintain federal financial aid eligibility, students must make satisfactory academic progress (SAP). Which is NOT typically a SAP requirement?
- Minimum GPA
- Completing a percentage of attempted credits
- Maintaining full-time enrollment (Correct answer)
- Finishing degree within maximum timeframe
Correct answer: Maintaining full-time enrollment
SAP requirements include GPA, completion rate, and maximum timeframe, but full-time enrollment is generally not required for SAP.
Question 6: Which federal aid program provides funds to schools to award to students, not directly to students' accounts?
- Pell Grant
- Campus-based aid programs like FSEOG and FWS (Correct answer)
- Direct Loans
- TEACH Grant
Correct answer: Campus-based aid programs like FSEOG and FWS
Campus-based programs like FSEOG and Federal Work-Study are allocated to schools, which then distribute them to eligible students.
FAFSA Federal Aid Types and Eligibility 2
Who is eligible to borrow a Direct PLUS Loan?