You can receive both a Subsidized Direct Loan and an Unsubsidized Direct Loan for the same enrollment period. The interest rate is variable but will never exceed 8.25 percent. You will also pay a loan fee of 4 percent of the loan which is deducted from each loan disbursement. The loan fee is paid to the government. Repayment of the Subsidized Direct Loan begins six months after you leave school or cease to be enrolled on at least a half-time basis.
Interest begins accruing at the same time.
The Direct Loan Program offers four repayment plans which are discussed in more detail in materials you will receive. Direct Loans will be credited to your University student account. If the parents are denied a PLUS loan, a dependent student is then eligible for loan assistance through the Unsubsidized Direct Student Loan program. The yearly borrowing limit on the PLUS Loan is equal to your cost of attendance minus any other financial aid you receive. The interest rate is variable, but it will never exceed 9 percent.