▁en rolled ▁in ▁school ; ▁they ▁are ▁often ▁referred ▁to ▁as ▁un sub s id ized ▁lo ans . ▁The ▁Un sub s id ized ▁Staff ord ▁Lo an ▁and ▁Grad ▁PL US ▁loan ▁are ▁non - need ▁based ▁lo ans ▁available ▁for ▁both ▁under grad uate ▁and ▁gradu ate ▁students ▁who ▁do ▁not ▁qual ify ▁for ▁need - based ▁financial ▁aid . ▁ ▁Even ▁though ▁these ▁lo ans ▁are ▁not ▁subs id ized , ▁interest ▁rates ▁are ▁set ▁by ▁Congress , ▁the ▁programs ▁are ▁closely ▁super vised , ▁and ▁they ▁provide ▁many ▁prote ctions ▁that ▁private ▁lo ans ▁rarely ▁offer . ▁ ▁There ▁are ▁also ▁non - need ▁based ▁gr ants ▁and ▁scholar ships ▁that ▁consider ▁mer it ▁rather ▁than ▁financial ▁need . ▁These ▁awards ▁are ▁granted ▁by ▁the ▁college ▁or ▁university ▁as ▁well ▁as ▁outside ▁organizations . ▁Mer it - based ▁scholar ships ▁are ▁typically ▁awarded ▁for ▁out standing ▁academic ▁achiev ements ▁and ▁maximum ▁S AT ▁or ▁A CT ▁scores . ▁However , ▁some ▁scholar ships ▁may ▁be ▁awarded ▁due ▁to ▁special ▁tal ents ▁like ▁athlet ic ▁scholar ships , ▁leadership ▁potential , ▁and ▁other ▁personal ▁characteristics . ▁In ▁order ▁to ▁be ▁considered ▁for ▁such ▁awards ▁some ▁institutions ▁require ▁an ▁additional ▁application ▁process ▁while ▁others ▁automatically ▁consider ▁all ▁admitted ▁students ▁for ▁their ▁mer it - based ▁scholar ships . ▁ ▁Non - need - based ▁aid ▁versus ▁need - based ▁aid ▁With ▁the ▁year ly ▁rising ▁cost ▁of ▁tu ition , ▁room ▁and ▁board , ▁and ▁fe es ▁among ▁schools ▁across