Federal Direct Student Loan
- Deferred while the student is in school
- Fixed Interest Rate of 4.66% for Undergraduate Subsidized and Unsubsidized loans (Fixed Interest Rate of 6.21% for Graduate Unsubsidized loans)
- Subsidized (interest paid by the government while the student is in school) or Unsubsidized (interest accruing while the student is in school) eligibility is determined by the FAFSA calculation
- Fees are 1.072% of the principal loan amount
- Repayment - when the student graduates or drops below half-time status, they have a six-month "grace period" before starting repayment
There are two online forms you must fill out to complete the paperwork for the Federal Direct Loans: Entrance Counseling and the Master Promissory Note (subsidized/unsubsidized loan).