Through Federal Direct Loans, funds are provided to students and their parents by the federal government. Student loans are borrowed money that must be repaid, with interest. Direct Loans include subsidized, unsubsidized, and PLUS loans. The borrower repays these loans to the US Department of Education. To be eligible, the student must:
- be enrolled at least half time (6 credits per semester);
- be admitted to a degree program;
- not be in default on a federal student loan;
- be a US citizen or eligible non-citizen;
- have a valid Social Security number;
- be registered with Selective Service, if required; and
- maintain satisfactory academic progress
"Time Limitation on Direct Subsidized Loan Eligibility for First-Time Borrowers on or after July 1, 2013."
Beginning with the 2013-2014 academic year, students who borrow a Federal Direct Subsidized Loan for the first time (defined as someone who has no outstanding balance on a FFELP or Direct Loan when receiving a Direct Loan) on or after July 1, 2013, will only be able to borrow up to 150% of the published length of the program of study. The maximum period of Federal Direct Subsidized Loan eligibility for a 4-year bachelor's degree program is 6 years. Additional information on the 150% Federal Direct Subsidized Loan Limit is available at
Changes effective July 1, 2012
Students borrowing Federal Direct Subsidized Loan will no longer have a subsidized 6 month grace period. Loans processed after this date will still have a 6 month grace period, however, interest will begin accruing immediately on the principle as soon as the student is no longer enrolled or has dropped below half-time enrollment.
For further information and details on Direct Loans, and how to apply, please click the links below: