The Federal Direct Student Loan program enables students to borrow directly from the Government for educational costs after high school. The loan is insured by the federal government.
A student must complete a FAFSA and any needed supporting documentation before the Financial Aid Office can approve a Federal Direct Loan. All loans must be applied for annually for each school year.
The maximum amount a student can borrow for a Federal Direct Student Loan is the cost of attendance at the school less any financial aid received or other educational resources. If all eligibility requirements are met the dependent and independent undergraduate student can borrow a Subsidized Direct Loan of up to $3,500 the first year and $4,500 the second year, and an additional Unsubsidized Direct Loan of up to $2,000 each year. The student who is considered independent by Title IV definition may request additional unsubsidized loan funds beyond these limits.
The federal government pays the interest on Subsidized Direct Loans while the student is in school at least half-time and during deferment periods. The borrower is responsible for interest charges on Unsubsidized Direct Loans. Repayment on all Federal Direct Loans begins six months after graduation, withdrawal from college or dropping below half-time status.