Subsidized Direct Loan

This is a need-based program that pays the loan interest while the student is enrolled in school on at least a half-time basis, and during the six month grace period after enrollment ends.

Unsubsidized Direct Loan

This is a non need-based loan for which all students qualify. The program also has a six month grace period, but the interest starts accruing while the student is in school. The interest can be capitalized.

Additional Unsubsidized Direct Loan

This non need-based loan is restricted to independent students only. The program also has a six month grace period, but the interest starts accruing while the student is in school.  A dependent student can borrow under this program only if his/her parents have been turned down for the PLUS Loan Program.

Federal Parent (PLUS) Loans

This is a government-insured loan made by commercial banks or other lending institutions to parents of undergraduate dependent students. This program is non need-based and is for dependent students' parents to borrow on behalf of the student. This program requires a separate application that is processed through a lending institution and is based partly on the parents' credit worthiness. Interest is paid by the parent and there is no grace period. Repayment starts within 60 days of disbursement of the funds.