Federal Direct Student Loan
A Federal Direct Student Loan is a variable low-interest loan which will help to cover educational cost. There are two types of Direct Student Loans:
- Subsidized: the government pays the interest while you are in school. This loan has deferment and a grace period.
- Unsubsidized: You pay the interest while in school. This loan also has deferment and a grace period.
The FAFSA application is used in making the determination as to whether you are eligible for a subsidized loan or an unsubsidized loan.
After you graduate, leave school, or drop below half-time enrollment, you have a six-month grace period before repayment begins. The Federal Government will send you information about repayment.