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What types of federal student loans are available?

William D. Ford Direct Stafford Loans:

  • are for undergraduate and graduate students
  • provide affordable interest rates
  • offer various repayment plans

Federal Direct Loans can be subsidized or unsubsidized. What's the difference?

Subsidized Loan


Interest isn’t charged while you are in school. It begins to accrue six months after you drop to less than half-time or leave school. Eligibility is based on financial need, which is determined by the FAFSA.

Unsubsidized Loan


Interest is charged beginning on the day the loan is disbursed until it is paid in full. This is still a good loan option, but make sure you borrow subsidized loans first if you are eligible.

PLUS Loan


This works like an unsubsidized loan and is for parents of dependent, undergraduate students and for graduate or professional students. Eligibility is not based on financial need, but a credit check is required.

Tip: Federal Direct Student Loans are subject to an origination fee which is deducted prior to disbursement to your school.

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Question: Loan Types

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