Students must demonstrate financial need to receive this type of loan. The federal government pays the interest on these loans while students are in school at least half time and during certain periods, such as grace and deferment . Students can get these loans regardless of financial need but will have to pay all interest charges. Federal Direct PLUS Loans Parents of dependent students can get these loans to pay for their children's education.
Parents are responsible for all interest charges.
These loans combine one or more federal education loans in one new Direct Loan. Only one monthly payment is made to the U.S. Department of Education. In certain circumstances, students who have loans under the Federal Family Education Loan Program may consolidate them into Direct Loans. Parents must complete a separate PLUS Loan application available from postsecondary institutions. The amount students can borrow each year for Direct Subsidized and Direct Unsubsidized Loans depends on whether they are dependent students or independent students .