Loan Programs

  • What types of Federal Direct Student loans are available?

    There are two types of Federal Direct Loans: subsidized and unsubsidized. As a student loan borrower you may be eligible for one type or a combination of both subsidized and unsubsidized. Subsidized means the government pays the interest for you while you are in school at least half time, or in some deferment periods. Unsubsidized means you are responsible for the interest on the loan from the first day of disbursement, even if you choose to defer the interest until your loan goes into repayment. The interest rate on both the subsidized and unsubsidized loans is set each July 1st and is fixed for the life of the loan. Both subsidized and unsubsidized loans go into repayment six months after you leave school or cease to be at least a half time student. This six month period is called a grace period. To apply for a Federal Direct loan you must first complete the Free Application for Federal Student Aid (FAFSA) as well as complete a Master Promissory Note (MPN).

What is a Federal Direct Subsidized loan? >