Federal Direct Student Loans
The Federal Direct Student Loan is a non-credit based student loan that is funded by the U.S. Department of Education. Students enrolled in 2, 4 and eligible certificate programs are eligible to apply for these loans. There are three basic types of Direct loans: subsidized and unsubsidized that students can apply for and Direct PLUS loans that parents may apply for to assist students. The subsidized and unsubsidized have the same fixed interest rate, which is determined each year on July 1st. Students must meet financial aid eligibility criteria to be considered for Federal Direct student loans.
Are need-based loans where the government pays the interest to the lender while the student is in the deferment period. Once in repayment, the student is responsible for paying the interest on the loan as well as the principal amount borrowed. Your need is based on information collected from the Free Application for Federal Student Aid (FAFSA). Beginning with the 2013-14 academic year subsidized loans are limited to 150% of a student's program. See the Financial Aid Newsletter to your right for additional information.
Unsubsidized and PLUS Loans
Government does not pay the interest on behalf of the student. Instead, the borrower is responsible for all the interest that accrues and capitalizes from the time the loan disburses. Though it is non-need based aid, the amount of the unsubsidized loan combined with other aid cannot exceed the students total estimated cost of attendance.
FOR FURTHER INFORMATION ON WHAT TYPE OF LOAN YOU MAY BE ELIGIBLE FOR, PLEASE CONTACT THE FINANCIAL AID OFFICE.