There are two types of Federal Direct Loans: subsidized and unsubsidized.
Direct Subsidized means that interest, which accrues on a loan, while a borrower is in school, grace, or authorized periods of deferment, is paid by the government. The borrower must meet certain financial need criteria in order to be eligible for Subsidized Loans.
Direct Unsubsidized means that the borrower is fully responsible for paying the interest that accrues on the loan. Interest on an Unsubsidized Loan accrues from the date of disbursement and continues throughout the life of the loan. If you do not meet the financial need criteria to qualify for a subsidized loan, you can still apply for an unsubsidized loan.
Repaying Your Federal Direct Loan
You are required to begin repaying your Federal Direct loan six months after you graduate, leave school or drop below half-time attendance. Borrowers generally have 10 years to repay these loans.
Students who received a Federal Direct Loan are required to complete Exit Counseling upon graduation or withdrawing from school.
For more information on Federal Direct Loan Consolidation go to www.loanconsolidation.ed.gov.
Requirements and Regulations for Federal Direct and Direct Parent PLUS Loans
- All students applying for a Federal Direct Loan and parents applying for a Parent PLUS Loan must be U.S. citizens or eligible non-citizens.
- All students must be enrolled in a degree-seeking program at least half-time (six hours) per semester to qualify for a Federal Direct Loan or to have their parents qualify for a Parent PLUS Loan.
- Students must attend classes and maintain satisfactory academic progress to continue being eligible for their loans.
- If students withdraw from classes before the end of the term, they must still repay their loans.
- All single semester loans require two disbursement dates.