Federal Direct Loan Program

The William D. Ford Federal Direct Loan is a fixed interest rate loan. The total of all financial aid, including loans cannot exceed the standard budget of the institution, meaning that you can't borrow more than the estimated costs of your college school needs. Besides the need and budget limitations for these loan programs, a federal maximum applies for each grade level. To receive a Federal Direct Loan, you are required to:

• be enrolled at least half time.
• meet institutional satisfactory academic progress standards.
• have completed the financial aid process.

There are two types of Federal Direct Loans: subsidized and unsubsidized.

Subsidized Loans

Subsidized loans are available to students that demonstrate financial need after applying all scholarships, grants, work-study, tuition waivers and applicable resources. If your need has been met with those other types of assistance, you will not receive a subsidized loan. If you do qualify, the US Department of Education will pay the interest on your loan while you are enrolled in college at least half time and for the first six months after you leave school. Loan recipients may also apply for periods of deferment after leaving school if hardships or low income prevent repayment.

Unsubsidized Loans

The Federal Direct Loan program also makes available an unsubsidized loan that is non-need based and accrues interest while the student is attending college. Students can pay the interest while in school or choose to let the interest capitalize until they begin making payments. This option will increase the total amount that must be repaid. 

Obtaining a Federal Direct Loan

Please read the following section to learn how to receive a Federal Direct Loan.

Loan Reporting

Subsidized and Unsubsidized Federal Loan information will be submitted to the National Student Loan Database System, and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system.