I was very confused (read: saddened haha) by my financial aid award as well!
So I called the office about a week ago. The financial aid officer was very helpful in answering ALL of my annoying questions, which resulted in the following info:
-As of July 2012, there will be no SUBSIDIZED Stafford loans offered for entering students (read about it here:
http://www.usnews.com/education/best-graduate-schools/top-graduate-schools/paying/articles/2012/03/13/grad-students-to-lose-federal-loan-subsidy)
-We still can get the Direct Med Unsubsidized: 6.8% interest rate accruing from the time it is paid out, but you can pay the interest while you are in school to avoid it being added to the principal (yay!):
http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp
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They have not assigned need-based aid yet (university aid including grants, scholarships, etc.). I didn't really understand her explanation after that point because I thought she said that they would be awarding this need-based aid after the term starts, meaning you would have to accept whatever aid you've been awarded, then accept the better aid (grants, scholarships, etc.) when it is offered, and then you could pay back the less awesome aid (Direct PLUS)--but you'd have to double-check that they allow early re-payment...Like I said, I didn't fully understand the answer lol.
***Note: On the flip-side, the fact that need-based aid has not been awarded yet is in no way a guarantee that we will be getting any later on, so I am trying to plan out how I would pay for school given my current award.