Federal William D. Ford Direct Loan Programs
Federal Direct Loans are low-interest loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. Eligible students borrow directly from the U.S. Department of Education (the Department) at participating schools.
Federal Direct Subsidized Loan Program
Subsidized loans are loans for which the borrower is not responsible for the interest while the student is enrolled in college on at least a half-time basis, when the loan is in the six-month grace period* after the student is no longer enrolled at least half time, or if the loan is in a deferment status Direct Subsidized Loans are for students with financial need. The Financial Aid office will review the results of your Free Application for Federal Student Aid (FAFSA) and determine the amount you can borrow. [*–If you receive a subsidized loan first disbursed on or after July 1, 2012, and before July 1, 2014, you will be responsible for the interest that accrues while your loan is in the grace period.]
Students must demonstrate financial need to receive this type of loan. (Financial Aid determines need based on the information provided on the Student Aid Report.)
Federal Direct Unsubsidized Loan Program
Students can get these loans regardless of financial need, but will have to pay all interest charges. Interest accrues (accumulates) on an unsubsidized loan from the time it’s first paid out. You can pay the interest while you are in school and during grace periods and deferment or forbearance periods, or you can allow it to accrue and be capitalized (that is, added to the principal amount of your loan). The Financial Aid office will review the results of your Free Application for Federal Student Aid (FAFSA) and determine the amount you can borrow.