FEDERAL DIRECT LOANS
The federal Direct Loan is a low-interest student loan with flexible repayment options. The student must be enrolled at least half-time (6 hours of enrollment per semester) in a degree-seeking program. The loan is borrowed from and insured by the Department of Education.
Two Types of Federal Direct Student Loans
Subsidized loans are offered to students who are eligible for need-based financial assistance. No interest is charged on these loans until you graduate, withdraw, or are enrolled less than half-time. Interest accrues following a six-month grace period.
Unsubsidized loans are available to those who do not qualify for need-based financial assistance. Unlike subsidized loans, interest accrues on these loans while students are still in school. You have the option to pay the interest as you attend school or to wait for the repayment period to begin.
How to Apply
There are four required steps to apply for a Federal Direct Loan.
Federal School Code: 003432
