Direct federal loans are a form of financial aid available to assist undergraduate students attending college at least half-time. Students may use the funds to pay for tuition, books, and living expenses. Loans must be repaid at a low fixed-rate.

Interest Rates

Loan Type Borrower Type Loans disbursed on or after 7/1/2013 to 7/1/2014 Loans disbursed on or after 7/1/2014 to 7/1/2014
Direct Subsidized Loans Undergraduate 3.86% 4.66%
Direct Unsubsidized Loans Undergraduate 3.86% 4.66%
Direct PLUS Loans Parent 6.41% 7.21%

Federal Direct Subsidized Loan

A loan based on financial need for which the federal government pays the interest that accrues while the borrower is in an in-school, grace, or deferment status. For Direct Subsidized Loans first disbursed between July 1, 2012 and July 1, 2014, the borrower will be responsible for paying any interest that accrues during the grace period. If the interest is not paid during the grace period, the interest will be added to the loan's principle balance.


Federal Direct Unsubsidized Loan

A loan for which the borrower is fully responsible for paying the interest regardless of the loan status. Interest on unsubsidized loans accrues from the date of disbursement and continues through the life of the loan.


Federal Direct Parent Loan for the Undergraduate Student (PLUS)

A loan available parents of dependent undergraduate students for which the borrower is fully responsible for paying the interest regardless of the loan status.