Federal Direct Student Loan
A Federal Direct Student Loan is a variable low-interest loan that will help to cover educational costs. 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.
Loans are disbursed in two disbursements, even if it is a one-semester loan. The second disbursement is half-way through the loan period.
Entrance Counseling, MPN, and Annual Student Loan Acknowledgement will be required to be completed prior to the first disbursement.
Freshman, first-time borrowers’ first disbursement will be delayed until the 30th day of the semester.
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.