Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's education
The loan lender is the U.S. Department of Education and the department provides a single point of contact for loan servicing and student loan information.
Direct Subsidized Loans
For students with demonstrated financial need, as determined by the Federal Methodology. No interest is charged while the student is enrolled at least half-time, during the grace period and deferment periods.
Direct Unsubsidized Loans
Students who are ineligible for a subsidized loan (or whose parents have been denied a plus loan) may take out this type of loan. These loans are not based on financial need and interest is charged during all periods, even when the student is in school, and during grace and deferment periods.
Direct (PLUS) Loans
These are unsubsidized loans for the parents of dependent students without adverse credit history to help pay for educational expenses up to the cost of attendance less all other financial assistance. Interest is charged during all periods and a credit history is performed by the Department of Education upon application.