Federal Direct Loan Program
Federal Direct loans are federal student loans made available to professional degree students to supplement personal and family resources, scholarships, and work-study. Federal Direct loans may be subsidized by the U.S. Government or unsubsidized depending on your need.
Federal Direct Subsidized Loan
The Federal Direct Subsidized Loan is a low interest loan that must be repaid to the Federal Government. The U.S. Department of Education pays the interest on the loan while you are enrolled at least half-time status in a degree-seeking program. A six month grace period is given to students that have withdrawn or graduated.
Federal Direct Unsubsidized Loan
The Federal Direct Unsubsidized Loan is a low interest loan that must also be repaid to the lender. Unlike the subsidized loan program, unsubsidized loans do not require you to have financial need. Furthermore, interest will accrue on the loan and you will be responsible for the interest from the time of disbursement. You can choose to defer the interest when signing the promissory note, but interest will accrue while you are in school.
Eligibility
You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen accepted for enrollment or attending a school that participates in the Federal Family Education Loan Program. Additionally, you:
- Must have submitted a FAFSA.
- Must be enrolled or plan to enroll at least half time.
- Must have financial need for the Federal Direct Subsidized Loan.
- Must not have reached your aggregate loan limit.
- Must not be in default on a previous student loan.
Borrowing Limits
The most that a student can borrow in subsidized and unsubsidized Federal Direct loans annually is equal to the student's cost of attendance minus other estimated financial assistance. The student may not borrow over the maximum amounts set by federal law. For law students, the maximum annual amount that can be borrowed in Federal Direct loans is $20,500. However, no more than $8500 can be subsidized.