Federal Direct Loan Programs
Eligibility for many loans is based on financial need as determined through information provided on the FAFSA. There are several types of loans available to students and their families.
Loans Based on Financial Need
The following loans are based on financial need:
- Federal Direct Subsidized Loan — The most popular federal student loan, a Federal Direct Subsidized Loan is awarded based on need as determined from information on the FAFSA. The U.S. Department of Education pays interest while the borrower is in school and during any grace and deferment periods. The student must be an undergraduate student enrolled at least half-time (six credit hours) and have demonstrated financial need. The annual loan limit ranges from $3,500 to $8,500 based on grade level. First-time borrowers on or after July 1, 2013, are subject to a time limit on Direct Subsidized Loans. Learn more.
- To accept a Subsidized Loan offered to you, follow the links at the left - "Accept Your Loans."
- Nursing Student Loan — The Nursing Student Loan programs provide long-term, low-interest rate loans to undergraduate students who have been admitted into the nursing program and have filed their FAFSA by December 1.
- To accept a Nursing Loan offered to you, follow the links at the left - "Accept Your Loans."
Loans NOT Based on Financial Need
The following loans are not based on financial need:
- Federal Direct Unsubsidized Loan — Students must complete the FAFSA to be eligible for this loan program. This loan is given in lieu of, or in combination with, a Federal Direct Subsidized Loan for undergraduate students, or alone for graduate/law students. Terms are the same as the Federal Direct Subsidized Loan, except the borrower is responsible for the interest from the date of disbursement.
- To accept an Unsubsidized Loan offered to you, follow the links at the left - "Accept Your Loans."
- Federal Direct Parent Loan for Undergraduate Students (PLUS) — Students must complete the FAFSA to be eligible for this loan program. The applicant is the student's parent, who is responsible to begin repayment almost immediately upon disbursement. If a parent is denied for this loan, the student may be eligible for a Federal Direct Unsubsidized Loan.
- Private Loans — Private Loans are generally in the name of the student; a FAFSA is not generally required for these loans. Often the student is the borrower, and may need to have a creditworthy co-borrower. Interest rates, repayment plans and deferment options vary widely among lenders. Be sure to "shop" for the option that is right for your situation since these are loans that are designed to bridge the funding gap when savings, scholarships, grants, federal loans, and other resources are not sufficient.
- The Graduate PLUS loan, or GradPLUS loan, is a low, fixed interest rate student loan guaranteed by the U.S. government. Students must complete the FAFSA to be eligible for this loan program. The Grad PLUS loan is a non-need credit based loan similar to a private student loan with the benefit of having a fixed interest rate and federal guarantee. The GradPLUS Loan allows graduate students to borrow the total cost for their graduate school needs, including tuition, room and board, books & supplies, and travel, less any other aid. GradPLUS payments can be deferred while you are in school.