Federal Direct Loans

The Federal Subsidized Direct Loan is need-based. Principal and interest payments are postponed while students are enrolled in school at least half time and during their grace period. The federal government pays the interest for the student during this time.

The Federal Unsubsidized Direct Loan is not need-based. You may qualify for this program as long as your educational costs do not exceed the amount of financial aid awarded. Monthly principal payments are postponed while students are enrolled in school at least half time and during their grace period. Students are responsible for paying the interest that accrues on their loan. Students can either make interest payments or request the lender to add the accrued interest to the principal balance. This is called capitalization and increases the total amount students will repay.

A Federal Additional Unsubsidized Direct Loan is available to independent students. Principal and interest terms are the same as the Unsubsidized Federal Direct Loan.

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