Federal Direct Loans

One of the most common types of student loans that is awarded to students are the Federal Direct Loans. There are two types of Federal Direct Loans; Federal Direct Subsidized Loans and Federal Direct Unsubsidized Loans. A 1.066% loan origination fee  will be charged on both types of loans.

Students may accept the amount of Federal Direct Student Loans that they have decided to borrow by logging into MyBLUE. Students do not have to accept the full amount of the loans, and may enter any partial amount that is decided to be borrowed. A borrower may also contact the Office of Financial Aid to reduce the amount of loan that has been accepted.

List of Past Interest Rates

Federal Direct Subsidized Loans

In short, Federal Direct Subsidized Loans have slightly better terms to help out students with financial need.

Overview of Federal Direct Subsidized Loans:

  • Federal Direct Subsidized Loans are available to undergraduate students with financial need.
  • Your school determines the amount you can borrow, and the amount may not exceed your financial need.
  • The U.S. Department of Education pays the interest on a Federal Direct Subsidized Loan:
    • While you’re in school at least half-time,
    • For the first six months after you leave school (referred to as a grace period), and
    • During a period of deferment (a postponement of loan payments).

Federal Direct Unsubsidized Loans

Overview of Federal Direct Unsubsidized Loans:

  • Federal Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need. Graduate students may only qualify for Federal Direct Unsubsidized Loans.
  • Your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive.
  • You are responsible for paying the interest on a Federal Direct Unsubsidized Loan during all periods.
  • If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).

Note: Interest payments to a Federal Direct Unsubsidized Loan do not have to be made while in school. However, the Office of Financial Aid does encourage these borrowers to begin making the interest payments in order to minimize the total debt owed when finishing school. Making the interest payments keeps the loan debt from inflating beyond the original principle amount borrowed

National Student Loan Data Systems (NSLDS)

The National Student Loan Data System (NSLDS) is the U.S. Department of Education's (ED's) central database for student aid. NSLDS receives data from schools, guarantee agencies, the Federal Direct Loan program, and other Department of Education programs. NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data.