Federal Direct Subsidized and Unsubsidized Loans
The Federal Direct Loan program provides low-interest loans to students enrolled at least half-time. Note the difference between Direct Subsidized and Unsubsidized Loans:
- Subsidized: The government pays the interest while the student is in school. Interest begins to accrue during the grace period.
- Unsubsidized: Interest accrues during the in-school and grace periods.
Complete an online loan authorization form for the appropriate aid year:
And, if you are a new borrower:
- Complete the Federal Direct Loan Master Promissory Note (MPN). The MPN is a written contract between the borrower and the lender. This can be completed online at the Direct Loan website. Sign in to the "Manage My Direct Loan" section of the site using your social security number, last name, birth date, and FAFSA PIN. Select "Complete Master Promissory Note," then "Subsidized/Unsubsidized."
- Complete Loan Entrance Counseling, which is also available online at the Direct Loan website. Sign in to the "Manage My Direct Loan" section of the site using your social security number, last name, birth date, and FAFSA PIN. Select "Complete Counseling" then select "Entrance Counseling."
Receiving your loan
The Direct Loan Program will send a loan disclosure statement when your loan has been processed. Save this statement to compare to your online bill later. It will show the total amount of your loan, the disbursement amounts and the estimated disbursement dates. This is an estimation of when the funds will be transferred, NOT the date the funds may be released to you.
To compare the terms of the different loans available to you and help determine which loans would best meet your needs, use our loan comparison chart.
Tools for determining your costs and calculating your balance are available in the Cost of Attendance Webpage. By selecting your program and then completing a Cost Estimation Worksheet, you can gain a better understanding of your individuals costs, what will be covered by grants and scholarships, and how much you may need to borrow in loan funding or cover through personal resources.