Federal Loans
(current interest rates may be found at www.studentloans.gov)
Federal Direct (Subsidized) Student Loans:
Subsidized loans are based on financial need. The principle is deferred until six months after your last day of attendance at a half-time level. The federal government pays the interest on the loan while you are in school at least half-time, during your six months grace period, and during authorized periods of deferment.
Federal Direct (Unsubsidized) Student Loans:
This loan is a non-need based loan. While the principle is deferred until six months after your last day of attendance at a half-time level, you are responsible for the interest that accrues from date of first disbursement forward. Interest can either be paid while you are in school, or it can be postponed until you enter repayment. If you postpone paying interest, once you enter repayment it will be capitalized (added to principal) thereby increasing the outstanding balance on which interest accrues daily.
Federal Direct Parent Loans for Undergraduate Students (PLUS):
The federal government sponsors PLUS loans for families needing additional loan assistance. If a parent borrows on behalf of a dependent undergraduate student, the student must also meet general eligibility requirements. The maximum PLUS loan amount that a parent can borrow is the student's cost of attendance minus any other financial aid the student receives.