Loans are not considered financial aid because they must be repaid.

Loans are the most common type of undergraduate financial aid because they are available to all students, regardless of their financial need.

Grants are based on financial need, while scholarships are based on merit. Grants are awarded by the government, while scholarships are awarded by private organizations. Grants do not have to be repaid, while scholarships do.

The maximum amount of money that a student can borrow in federal student loans is $31,000.

The interest rate on federal student loans is 4.5%.

The repayment period for federal student loans is 10 years.

The grace period for federal student loans is 6 months.

Subsidized loans are based on financial need, while unsubsidized loans are not. Subsidized loans have a lower interest rate than unsubsidized loans. Subsidized loans do not have to be repaid while the student is in school, while unsubsidized loans do.

The maximum amount of money that a student can borrow in private student loans is $50,000.

The interest rate on private student loans is 5.5%.

The repayment period for private student loans is 10 years.

The grace period for private student loans is 6 months.

There is no difference between a Stafford loan and a Perkins loan.

The maximum amount of money that a student can borrow in PLUS loans is $40,000.

The interest rate on PLUS loans is 5.5%.

The repayment period for PLUS loans is 10 years.

The grace period for PLUS loans is 6 months.