A Federal Direct Subsidized Loan is awarded to students to meet financial need after other resources are subtracted or to the annual maximum loan limit, whichever is lower. It is the U.S. Department of Education's major form of self-help aid. For undergraduate students, Federal Direct Subsidized loans offered beginning July 1, 2014, have a fixed interest rate of 4.66%. The federal government pays interest on the loan until you graduate or drop to less than half-time (6 hours) enrollment.
A Federal Direct Unsubsidized Loan is not based on your financial need. If your Estimated Cost of Attendance (COA) is greater than your financial aid and you have not reached your annual maximum loan limit through the Federal Direct Subsidized Loan Program. The interest rate for Federal Direct Unsubsidized Loans is fixed at 4.66% (6.21% for graduate students). You are charged interest on this loan from the time the loan is disbursed until it is paid in full. If the interest is allowed to accumulate, it will be added to the principal amount of the loan and increase the amount to be repaid.
A loan fee of 1.073% is deducted from your loan before it is applied to your student account, for loans with first disbursements on or after 7/1/14.
To be eligible for a Federal Direct Loan, you must be enrolled for at least six credit hours per semester. If you are eligible for this loan, it will be included on your Financial Aid Award Letter.
To apply for this loan, follow the steps below:
To find more answers to frequently asked questions and to learn more about repayment options before receiving a Direct Loan, you may visit the Federal Direct Loan website or contact the Federal Student Aid Information Center at 800-4-FED-AID (800-433-3243).
You can complete Loan Exit Counseling through the Federal Student Loan Servicing website.