The terms and conditions of loans made under the Direct Loan Program are identical to those made under FFEL, except that borrowers under the Direct Loan Program are afforded somewhat different repayment options. In fact, from the student's perspective, the Direct Loan Program is the same as FFEL, except that the federal government provides the loan capital, and the school performs many of the tasks previously performed by the private lender.

Like the Federal Stafford Loan Program, to receive a Direct Subsidized or Direct Unsubsidized Loan students must complete and submit a Free Application for Federal Student Aid (FAFSA); first time loan recipients are also required to attend a loan counseling session prior to receiving payment. Unlike the Federal Stafford Loan Program, there is no additional separate application. Instead, the student is required to complete and sign a promissory note before he or she may receive the proceeds from a Direct Loan.

Direct Loan funds are provided by the federal government to schools. Schools then disburse the Direct Loan proceeds to students either in the form of a check or by crediting the student's account, if the school uses student accounts, and issuing a check for any credit balance.

Under the State Student Incentive Grant (SSIG) Program, federal funds are allocated to states to encourage the establishment and expansion of state scholarship and grant assistance to postsecondary students. The federal allotment must be matched by funds appropriated by the state.

In Louisiana, the SSIG Program is administered by the Louisiana Office of Student Financial Assistance. Each year, approximately 3,000 Louisiana students receive SSIG funds totaling more than $2,000,000, with the average award being $700. Individual grants range from $200 to $2,000; the amount is determined by the school's financial aid officer and is governed by the number of applicants and the availability of funds.

To be eligible, you must:

• Be a U.S. Citizen or eligible noncititzen
• Be a Louisiana resident (as defined by LOFSA)
• Have graduated from high school with at least a 2.00 cumulative GPA, a minimum average score of 45 on the GED, at least a 20 on the ACT or a cumulative postsecondary GPA of at least 2.00
• Be enrolled as a full-time undergraduate student
• Apply for a Pell Grant by completing the FASFA or Renewal FAFSA
• Have substantial financial need
• Not be in default on an educational loan nor owe a repayment on an educational scholarship/grant.