The Direct Loan Program has low interest rate loans that undergraduates, graduates and parents of reliant pupils may get through the Department of Education.
The program includes the Federal Subsidized Stafford Loan, the Federal Unsubsidized Stafford Loan. These loan programs had been developed by Congress to aid all qualified pupils and parents, with and without economic need, pay for the student’s expenses that are educational.
There are 2 forms of Federal Direct Loans, unsubsidized and subsidized.
Subsidized Loans are awarded based on economic need. Economic need is dependent upon subtracting the Estimated Family Contribution (EFC), supplied through the FAFSA, through the price of attendance. In case your economic need is certainly not completely met through other designs of help (including funds and scholarships), you may be qualified to receive Subsidized Loan funds up to the residual number of your monetary need or as much as the mortgage restrictions centered on your grade degree, whichever quantity is leaner. The government can pay interest on a subsidized loan while you are in college and throughout your six-month elegance duration.
If you don’t show economic need, you will be entitled to a Federal Unsubsidized Direct Loan.