FAFSA Federal Aid Types 1 — Questions and Answers
Question 1: Which federal grant does NOT need to be repaid and is awarded based on financial need?
- Federal Direct Subsidized Loan
- Federal Pell Grant (Correct answer)
- Federal PLUS Loan
- Federal Perkins Loan
Correct answer: Federal Pell Grant
The Federal Pell Grant is need-based aid that does not have to be repaid, making it the primary grant program for undergraduate students.
Question 2: What is the maximum annual Pell Grant award for the 2024-25 award year?
- $4,500
- $5,500
- $7,395 (Correct answer)
- $9,000
Correct answer: $7,395
The maximum Federal Pell Grant for the 2024-25 award year is $7,395, with the actual amount depending on the student's SAI, enrollment status, and COA.
Question 3: What is the key difference between a Federal Direct Subsidized Loan and an Unsubsidized Loan?
- Subsidized loans have lower interest rates than unsubsidized loans
- The government pays the interest on subsidized loans while the student is in school (Correct answer)
- Unsubsidized loans require a credit check
- Subsidized loans are available to graduate students
Correct answer: The government pays the interest on subsidized loans while the student is in school
With subsidized loans, the federal government pays the interest while the student is enrolled at least half-time, during the grace period, and during deferment periods.
Question 4: What is the annual borrowing limit for a first-year dependent undergraduate student for federal Direct Loans?
- $3,500 (Correct answer)
- $5,500
- $7,500
- $9,500
Correct answer: $3,500
First-year dependent undergraduates can borrow a maximum of $3,500 in subsidized loans plus additional unsubsidized loans for a combined limit of $5,500 per year.
Question 5: What is the Federal Work-Study (FWS) program?
- A program that automatically pays tuition from a student's wages
- A need-based program that provides part-time employment to help students earn money for education (Correct answer)
- A loan program for students who work while in school
- A scholarship for students employed in federal agencies
Correct answer: A need-based program that provides part-time employment to help students earn money for education
Federal Work-Study provides need-based part-time employment opportunities for eligible students, allowing them to earn money to help pay education expenses.
Question 6: The Federal Supplemental Educational Opportunity Grant (SEOG) is awarded to students with what level of financial need?
- Moderate financial need
- Exceptional financial need, primarily to Pell Grant recipients (Correct answer)
- Any enrolled student
- Students with an SAI above 1000
Correct answer: Exceptional financial need, primarily to Pell Grant recipients
SEOG is a campus-based grant reserved for students with exceptional financial need, with priority given to Pell Grant recipients with the lowest SAI.
FAFSA Federal Aid Types 1
Which federal grant does NOT need to be repaid and is awarded based on financial need?