The three basic kinds of federal student financial aid to college students are described: federal student loans (direct lending, both subsidized and unsubsidized); campus-based aid (Supplemental Educational Opportunity Grants, work-study programs, and Perkins Loans); and Pell Grants. Some details of program design and recent changes are noted.…

This Congressionally requested memorandum compares the Pell Grant provisions contained in the recent new versions proposed by the Senate and House with the current program. The first section describes the program, pointing out that students' eligibility for Pell Grants and the size of their awards depend on three factors: the amount they and their…