Direct Stafford Loans-Loans from the William D. Ford Federal Direct Loan (Direct Loan) Program, are low-interest loans for eligible students to help cover the cost of higher education. Direct Stafford Loans include the following types of loans:
- Direct Subsidized Loans—Direct Subsidized Loans are for students with financial need. You are not charged interest while you’re in school at least half-time and during grace periods and deferment periods.
- Direct Unsubsidized Loans—You are not required to demonstrate financial need to receive a Direct Unsubsidized Loan. Interest accrues (accumulates) on an unsubsidized loan from the time it’s first paid out. You can pay the interest while you are in school and during grace periods and deferment or forbearance periods, or you can allow it to accrue and be capitalized. If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay because you will be charged interest on a higher principal amount.
Parent PLUS Loans - PLUS loans are credit-based, available to Parents of dependent, undergraduate students, and require a separate application and MPN. The parent will repay the servicer listed on the disclosure statement provided when he or she received the loan. The loan servicer will provide regular updates on the status of the PLUS Loan, and any additional PLUS Loans that a parent receives. The loan servicer also will be listed in the parent's account on the National Student Loan Data System (see link by expanding NSLDS accordion below). The Direct PLUS Loan Program for parents offers three repayment plans-standard, extended, and graduated-that are designed to meet the different needs of individual borrowers. The terms differ between the repayment programs, but generally borrowers will have 10 to 25 years to repay a loan. A PLUS Loan made to the parent cannot be transferred to the student. The parent is responsible for repaying the PLUS Loan.
Graduate PLUS Loans - GRAD PLUS loans are credit-based, available to Graduate students, and require a separate application and MPN. There are several repayment plans that are designed to meet the different needs of individual borrowers. Generally, you'll have 10 to 25 years to repay your loan, depending on the repayment plan that you choose. You will receive more detailed information on your repayment options during entrance and exit counseling sessions.
Private Loans - funding through a private lending agency, these loans have a variable interest rate, and a credit check must be done on all applicants. Repayment options vary based on your loan terms. Check with your lender to see what your repayment options are. These loans cannot be consolidated with your federal student loans.