Which statement about financial aid programs for education funding is incorrect?

The statement regarding the EFC (Expected Family Contribution) calculation being used to determine a student’s eligibility for a Pell Grant is indeed incorrect. While the EFC is a critical factor in determining eligibility for federal student aid, including subsidies and federal loans, the specific eligibility for a Pell Grant is assessed based on several additional factors, including the cost of attendance, enrollment status, and the financial need of the student.

In contrast, the other statements accurately reflect aspects of financial aid programs. A Pell Grant is explicitly intended for undergraduate students and is a federal grant designed to help lower-income individuals pursue postsecondary education. The identification of the Direct Stafford Loan as a type of Stafford Loan is correct; it is a loan from the U.S. Department of Education that directly lends to students. Lastly, the classification of the FFEL (Federal Family Education Loan) Stafford Loan is also accurate; this loan program was designed to help students pay for college before it was discontinued for new borrowers after June 30, 2010. Understanding these distinctions is important when considering different financial aid options available to students.