What is the difference between a grant and a federal loan?
The main difference between grants and loans is whether or not you must repay them. A grant gives you money that you won’t have to pay back. (There are some exceptions regarding federal grant repayment.) Grants are basically a gift to help you pay for school.
What is the difference between grants and loans?
The main difference between a grant and a loan is repayment. A loan requires you to repay the money you borrow, whereas a grant does not. Grants are, essentially, a gift. Regardless of who disburses the loan, the borrower is required to repay the money—with interest and within a certain period of time.
Is a federal grant a loan?
A Federal Pell Grant, unlike a loan, does not have to be repaid, except under certain circumstances. Find out why you might have to repay all or part of a federal grant. Federal Student Grant Programs—Lists federal student grant programs with program details and award limits.
What is considered a federal loan?
Federal student loans are made by the government, with terms and conditions that are set by law, and include many benefits (such as fixed interest rates and income-driven repayment plans) not typically offered with private loans.
Are federal loans good?
After grants and scholarships, government student loans, more commonly known as federal student loans, should be your next choice to pay for college. They’re generally less expensive and more generous than private student loans. And you don’t need good credit or a co-signer to get them.
What is the max student loan amount?
When it comes to borrowing for college, federal student loans should usually be your first stop. But you can only borrow so much, since the federal government has a maximum student loan amount of $31,000 for dependent undergraduate students and $138,500 for graduate students.
What credit score is needed for a federal student loan?
Student loan credit score requirements
| Lender | Minimum credit score |
|---|---|
| Federal government | None |
| Earnest | 650 |
| Education Loan Finance | 680 |
What has no effect on your eligibility for federal student loans?
Your age, race, or field of study won’t affect your eligibility for federal student aid. While your income is taken into consideration, it does not automatically prevent you from getting federal student aid.