Colleges and universities use funds from a Direct Stafford Loan to pay for __ first. Leftover funds are then disbursed to the student borrower. A. Pell Grants B. school charges C. transcripts D. Perkins Loans

## Step 1<br />The problem is asking us to identify what the leftover funds from a Direct Stafford Loan are used for after the school charges have been paid. The options provided are: A. Pell Grants, B. school charges, C. transcripts, and D. Perkins Loans.<br /><br />## Step 2<br />We need to understand what each of these options represents. <br /><br />- Pell Grants are a type of federal financial aid that does not need to be repaid, unlike loans. They are not used to pay for leftover funds from a loan.<br /><br />- School charges are the costs associated with attending the school, such as tuition, fees, and other expenses. These are typically the first expenses that the funds from a loan are used to pay.<br /><br />- Transcripts are official records of a student's academic performance. They are not typically paid for with loan funds.<br /><br />- Perkins Loans are a type of federal student loan for undergraduate and graduate students with exceptional financial need. They are not used to pay for leftover funds from a loan.<br /><br />## Step 3<br />Based on the above understanding, the leftover funds from a Direct Stafford Loan are typically used to pay for school charges.