Federal Direct Student Loan

Direct Student Loans are low interest loans available to students to help pay for their school expenses. Unlike other loans, a Direct Loan is funded by the U.S. Department of Education rather than a bank or credit union. The Department of Education disburses the money directly to the school and the funds are applied to the student's tuition and fees. Just like other loans, Direct Loans must be repaid by the borrower.

There are two types of Direct Loans for students:

Subsidized

Direct Subsidized Loans are available to students that are enrolled at least half-time (6 credit hours), have financial need, and have not received financial aid exceeding their cost of attendance. The loan does not accrue interest while the student is enrolled at least half-time, during the 6 month grace period after graduation, and during deferment periods.

Unsubsidized

Direct Unsubsidized Loans are available to students that are enrolled at least half-time (6 credit hours) and have not received financial aid exceeding their cost of attendance. Unlike the subsidized loan, the unsubsidized loan does accrue interest while the student is in school, during their grace period, and during deferment.

Direct Loan eligibility requirements:

• Student is enrolled at least half-time (6 credit hours)
• Student must have a high school diploma or equivalent
• Student must be matriculated (enrolled and working towards a degree or certificate program)
• Must be a U.S. citizen or eligible non-citizen
• Have a valid Social Security Number
• Students must be making satisfactory academic progress
• Male students over the age of 18 must be registered with Selective Service
• Student's existing Direct Loans should be in good standing, not in default.
• Students cannot exceed their aggregate loan limit

Frequently Asked Questions

• How do I apply for a Direct Student Loan?
• Is there any other paperwork that needs to be completed?
• How much can I borrow for the academic year?
• What is the interest rate?
• Is there a charge for this loan?
• How is the loan money received?
• When do I begin repaying the loan?
• Can I ever postpone making loan payments?
• How long will I have to repay my loan, and what are the repayment options?

Loan Contact Information

General Information about loans and applying for them

Federal Student Aid Information Center
1-800-4-FED-AID

http://www.studentaid.ed.gov

Information on repaying your loan

Borrower Services
Direct Loan Servicing Center
1-800-848-0979

http://www.dl.ed.gov

Information on Consolidating your loans

Direct Loan Consolidation Center
1-800-557-7392

http://www.loanconsolidation.ed.gov