FAFSA Federal Aid Types and Eligibility 1 — Questions and Answers
Question 1: Which federal grant does NOT need to be repaid and is based on financial need?
- Federal Stafford Grant
- Federal Pell Grant (Correct answer)
- Federal PLUS Grant
- Federal Perkins Grant
Correct answer: Federal Pell Grant
The Federal Pell Grant is need-based grant aid that does not need to be repaid, making it the primary federal grant for undergraduates.
Question 2: What is the maximum annual Pell Grant award amount for the 2024-25 award year?
- $4,310
- $5,495
- $7,395 (Correct answer)
- $9,000
Correct answer: $7,395
The maximum Federal Pell Grant for the 2024-25 award year is $7,395.
Question 3: The Federal Supplemental Educational Opportunity Grant (FSEOG) is awarded to students with:
- Highest academic achievement
- Exceptional financial need, prioritizing Pell recipients (Correct answer)
- Athletic scholarships
- Out-of-state status
Correct answer: Exceptional financial need, prioritizing Pell recipients
FSEOG is awarded to undergraduates with exceptional financial need, with priority given to Pell Grant recipients.
Question 4: What is the Federal Work-Study program?
- A loan program for working students
- A program providing part-time jobs to students with financial need (Correct answer)
- A scholarship for employed students
- A tax credit for working students
Correct answer: A program providing part-time jobs to students with financial need
Federal Work-Study provides part-time employment opportunities for students with financial need to help pay education expenses.
Question 5: Which type of federal loan is available to both undergraduate and graduate students based on financial need?
- Direct PLUS Loan
- Direct Unsubsidized Loan
- Direct Subsidized Loan (Correct answer)
- Perkins Loan
Correct answer: Direct Subsidized Loan
Direct Subsidized Loans are available to undergraduate students who demonstrate financial need; graduate students are not eligible for subsidized loans.
Question 6: What is the key benefit of a Direct Subsidized Loan over a Direct Unsubsidized Loan?
- Lower loan limits
- The government pays interest while the student is enrolled at least half-time (Correct answer)
- Higher interest rates
- No repayment required
Correct answer: The government pays interest while the student is enrolled at least half-time
With Direct Subsidized Loans, the federal government pays the interest while the student is enrolled at least half-time, reducing the total amount owed.
FAFSA Federal Aid Types and Eligibility 1
Which federal grant does NOT need to be repaid and is based on financial need?