Federal Direct Loans
Federal Direct loans are loans provided by the U.S. Department of Education to help eligible students pay for direct (tuition, fees, books, and supplies) and indirect (housing, food, transportation and personal expenses) education related expenses. Direct loan interest rates are set annually through Congress. Annual and aggregate loan limits apply.
Types of Loans:
- Subsidized loans are need based and available to undergraduate students. The U.S. Department of Education pays the interest on Subsidized loans while a student is enrolled in school at least half-time and throughout the six-month grace period.
- Unsubsidized loans are not need based, and are available to both undergraduate and graduate students. Unsubsidized loans accrue interest while the student is enrolled in school and the student is responsible for paying all accrued interest.
- PLUS loans are available to the parents of dependent students (Parent PLUS) and to graduate students (Grad PLUS).
Repayment:
Repayment begins six months after the student graduates, withdraws from school, or falls below half-time enrollment status. For more information on loan repayment, visit the Federal Student Aid site.