A student with an EFC of zero can receive the maximu m award depending on his or her educational cost for the year. The Federal student loan programs are also available to students enrolled in postsecondary education. Unlike Pell Grants, student loans must be repaid. Also, unlike Pell Grants, you may receive a student loan whether you have financial need or not. Studen ts that have financial need receive subsidized loans while those that do not receive unsubsidized loans.
Student loans are available to both undergraduate and graduate students.
Stafford Loans are the Department's major form of self-help aid. The terms and conditions of both type s of Stafford Loans are similar. The major differences between the two are the source of the loan funds, some aspects of the application process, and the available repayment plans. Under the Direct Loan Program, the funds for your loan are lent to you dir ectly by the U.S. government. If your school does not participate in Direct Loans, the funds for your loan are lent to you from a bank, credit union, or other lender that participates in the FFEL Program.