Federal Education Loan Programs

Federal Direct Loan Program

Federal Direct Loans are federally backed student loans that enter repayment six months after the student graduates from college or ceases to be enrolled at least a half-time. Students must file the FAFSA in order to establish eligibility for Direct Loans.

Direct Loans are low-interest loans for students and/or parents to help pay for the cost of a student’s college education. The lender is the U.S. Department of Education rather than a bank or other financial institution.

Types of Direct Loans

The following Direct Loans are made through the William D. Ford Federal Direct Loan (Direct Loan) Program, which is administered by the U.S. Department of Education:

  • Direct Subsidized Loans are for students with demonstrated financial need, as determined by federal regulations (FAFSA). No interest is charged while a student is in school at least half-time, during the grace period and during deferment periods.  
  • Direct Unsubsidized Loans are not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods. 
  • Direct PLUS Loans are unsubsidized loans for the parents of dependent students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.  You may request for repayment of the loan to be deferred when applying.  If approved you may also complete this form to request for the loan to be increased or decreased at any time.