Federal Direct Subsidized and Unsubsidized Loans
The William D. Ford Federal Direct Loan (Direct Loan) Program is the U.S. Department of Education's federal student loan program. The U.S. Department of Education is the lender under this program.
Federal Direct Subsidized Loan
The Federal Direct Subsidized Loan is a federally-sponsored "need-based" loan. The federal government pays the interest while you are enrolled at least half time. Interest begins to accrue when you enter repayment. This loan is available to undergraduate students only.
Federal Direct Unsubsidized Loan
The Federal Direct Unsubsidized Loan is a federally-sponsored loan which has no interest subsidy. The interest accrues from the date of disbursement. You may pay the interest while you are enrolled or defer the interest. Accrued interest will capitalize once when you enter repayment. Students are encouraged to make the interest payments while in school to help decrease the total costs of the loan.