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. Subsidized loans do not accrue interest while a student is enrolled at least half-time in a degree-seeking program. Upon dropping below half-time enrollment, interest will begin to accrue. Interest begins accruing immediately on an Unsubsidized loan regardless of a student’s enrollment status. 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 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


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

Changes effective July 1, 2012

Federal Direct Subsidized Loan first disbursed on or after July 1, 2012 and before July 1, 2014 will not have a subsidized 6 month grace period.  Loans disbursed during this time period still have a 6 month grace period, however, interest will begin accruing immediately on the principal 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: