What Are Federal Grants and Do I Need to Pay Them Back?

Choosing a university comes with an abundance of opportunities and becoming a student can bring great advantages to one’s future. However, paying for tuition is a different story. That’s why federal grants are so vital for each individual who attends a college. Maranatha Baptist University participates in the Federal Grant System and is actively involved in aiding students in their financial needs. 

What exactly is a federal grant? A federal grant is a financial aid issued by Congress and distributed to students to assist their college bills. The advantage of receiving a federal grant is that grants require no payment. In addition, students can also receive federal loans that require a later payment. 

However, there are two different types of loans: subsidized and unsubsidized. If a student chooses a subsidized loan, the government will pay the student’s interest during the college years. If receiving an unsubsidized loan, students must be responsible to pay the interest. Although both options can be beneficial, subsidized loans have a greater effect on relieving the student’s bill because interest is being taken care of by the government. In order to be given a federal grant or loan, students must fill out FASFA, which stands for “Federal Application for Federal Student Aid.” Upon filling out this application, students may be eligible for a federal grant and loan. 

By receiving grants and loans, students can complete their college careers with less financial stress. Every year, students can apply for grants and loans at no cost. Maranatha Baptist University accepts federal grants and loans and is supportive of their great effect on students’ lives.  

For an in-depth look at grants and loans, read FAFSA | Financing Your Education