Direct Subsidized/Unsubsidized Loans

The Federal Direct Loan program is comprised of two types of student loans: subsidized and unsubsidized. Acceptance of either requires that the student be eligible for financial aid and be enrolled at least a minimum of half-time.

The SUBSIDIZED LOAN is a loan that is in the student's name and is based on financial need. The Department of Education will pay the interest on this type of loan while you continue at least half-time enrollment.

The UNSUBSIDIZED LOAN is a loan that is also in the student's name. The interest starts accruing when funds are received. The student is not required to make payments on either the principal or the associated accrued interest while attending at least half-time; however, there is no early-payment penalty should the student choose to do so.