Direct Loans are low-interest loans for students and parents that help pay for the cost of a student’s education after high school. The lender is the U.S. Department of Education rather than a bank or other financial institution.
Direct Loans are simple because you borrow directly from the federal government and you have a single contact – the Direct Loan Servicing Center – for everything related to the repayment of your loans, even if you receive Direct Loans at different schools.
Direct Loans are convenient because you’ll have access to your Direct Loan account information 24 hours a day, 7 days a week via Direct Loan Servicing Online at https://studentaid.ed.gov/sa/.
Direct Loans are flexible because you can choose from several repayment plans that are designed to meet the needs of almost any borrower, and you can switch repayment plans if your needs change.
The Direct Loan Program offers the following types of loans:
- Subsidized: for students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time, during the grace period, and during deferment periods.
- Unsubsidized: not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods.
- PLUS: unsubsidized loans for the parents of dependent students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.
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