A Federal Direct Loan is a form of financial aid that is borrowed and must be repaid with interest. Loans are available to students and parent(s) to help meet the cost of education after all other funding options have been exhausted.
Students must be enrolled in a minimum of six credit hours that meet Program Objective Enrollment Compliance (POEC) to be considered for a loan. Initial amounts may be adjusted if your graduation term falls within your loan period.
There are three types of loans available:
Subsidized Loans are available to eligible students who demonstrate financial need. The U.S. Department of Education pays the interest while the student is in school at least half-time (six or more credit hours), for the first six months after the student leaves school and during a period of deferment.
Unsubsidized Loans are available to eligible to students, but in this case, the student does not have to demonstrate financial need. The student is responsible for paying the interest during all periods. If the student chooses not to pay the interest while in school, during grace periods and deferment or forbearance periods, the interest will accumulate and be added to the principal amount.
PLUS Loans are available to eligible parents of dependent students to help pay for educational expenses not covered by other financial aid. The parent must not have an adverse credit history. The parent is responsible for paying the interest during all periods. If the parent chooses not to pay the interest while the student is in school, the interest will accumulate and be added to the principal amount.