The Pell grant loan as well as the Stafford loan is an educational loan which is meant for providing financial assistance to students who are interested in pursuing higher education but unfortunately do not have the means to do so on their own. Although both the programs are meant to provide monetary help to students at various levels of education, there are a number of differences between the two which are apparent on conducting an effective comparison between their requirements.

While the Pell grant loan and the Stafford loans both are meant to be availed by students hailing from low income backgrounds, the Pell grant being a federal program generally mentions the upper limit of the household income below which the candidate would be eligible for loan which does not have to be paid back. On the other hand, the Stafford loans which are unsubsidized and charge an interest from the students are generally provided to all applicants of financial aid without any kind of distinction. There is a difference in the borrowing limits as well as the amount granted among the two loans and the choice depends upon the financial needs as well as the personal preference of the students.

Both types of loans share some common factors between them as well like the educational requirements of the students and the disqualifying factors. While the former requires the students to be enrolled in the 2-year or the 4-year college degree program, the latter specifies that loans or grants will not be provided to students who have been convicted of possessing or selling drugs, who fail to show academic progress and who have been imprisoned for a certain period of time. Likewise, if the student attends more than one school at a time, then he is eligible to seek a loan from one institution only.

A student applying for a Pell grant loan or a Stafford loan must apply through the completion of FAFSA and it is subsequent to submission that the student’s application is reviewed for the purpose of acceptance. There is however, a difference in the repayment of both types of programs and while the Pell grant does not have to be repaid, the Stafford loans must be repaid unless the student is granted loan forgiveness from the appropriate authorities. Another notable difference is that while Pell grants are only meant for undergraduate students, the Stafford loans can be availed by undergraduate, graduate as well as professional students.