The Federal Direct Loan program provides government-funded loans to students and parents that must be repaid with interest to the U.S. Department of Education. This program includes Subsidized, Unsubsidized, and PLUS loans, which differ primarily in how interest accumulates. For Subsidized loans, the government pays the interest while the student is enrolled at least half-time in a degree-seeking program, with interest beginning to accrue only if the student drops below that level. Interest on Unsubsidized and PLUS loans starts accumulating from the date of disbursement, regardless of the student’s enrollment status. All borrowers repay their loans directly to the Department of Education. To be eligible, the student must: 

  • be enrolled at least half time (6 credits per semester for Undergraduate and Law students);
  • be enrolled at least half time (3 credits per semester for Graduate students):
  • be admitted to a financial aid eligible 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;
  • maintain satisfactory academic progress

Important Updates

  • Federal Student Aid is changing significantly for students and parents beginning with the 2026-27 aid year due to the passage of the One Big Beautiful Bill Act (OBBBA) on July 4, 2025. Learn more about the One Big Beautiful Bill Act.
  • All Direct Loan borrowers may complete an Annual Student Loan Acknowledgement (ASLA) each year they accept a new federal student loan. Our goal is to help you understand your loans and how they affect your financial future. The Annual Student Loan Acknowledgement process is available on https://studentaid.gov/

Changes effective July 1, 2012

Federal Direct Subsidized Loans first disbursed between July 1, 2012, and July 1, 2014, do not qualify for an interest-free grace period. While these loans still offer a six-month window before payments begin, interest will accrue on the principal as soon as the student graduates, leaves school, or drops below half-time enrollment.

For further information and details on Direct Loans, and how to apply, please visit the links below: