FAFSA Federal Aid Types

Question 1

Which federal grant does NOT need to be repaid and is awarded based on financial need?

Accepted Answer

Federal Pell Grant

Answer

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?

Accepted Answer

$7,395

Answer

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?

Accepted Answer

The government pays the interest on subsidized loans while the student is in school

Answer

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?

Accepted Answer

$3,500

Answer

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?

Accepted Answer

A need-based program that provides part-time employment to help students earn money for education

Answer

Federal Work-Study provides need-based part-time employment opportunities for eligible students, allowing them to earn money to help pay education expenses.

FAFSA Practice Test

FAFSA Practice Test

FAFSA Federal Aid Types