Final answer:
The loans awarded based on the financial need of the student are the Perkins loan and the subsidized Stafford loan. Subsidized loans have the interest paid by the government while in school, unlike unsubsidized loans. Students use FAFSA to apply for federal financial aid, including these loans.
Step-by-step explanation:
Loans that are awarded based on the financial need of the student are the Perkins loan and the subsidized Stafford loan, making Option B the correct answer. When discussing grants vs. loans, the main difference is that grants do not need to be repaid whereas loans do. Subsidized loans are offered based on financial need and the government pays the interest while the student is in school or during deferment periods. Unsubsidized loans are not based on financial need, and interest accrues from the time the loan is disbursed. To apply for these loans, students must complete the Free Application for Federal Student Aid (FAFSA) each year they plan to attend postsecondary education. The FAFSA is essential in determining eligibility for federal financial aid, which includes student loans, grants, and work-study programs. It's important to understand that taking out student loans is a significant commitment as they can take a long time to pay off.