The U. S. Department of Education is the lender, delivering the loans to students through the university, which processes promissory notes and disburses the loans after they have been approved. When it is time for repayment, students send all loan payments directly to the federal government's loan processor. To receive your aid in time to pay tuition, you should apply as early as possible.
Processing can take as long as four months.
For the unsubsidized loan program, on the other hand, need is not a factor, so you may borrow amounts either up to your cost of education less other aid, OR up to program limits, whichever is less. Further , for this program students may borrow no more than the total cost of their education minus family contributions and other aid received. For the Federal Direct Unsubsidized Stafford Loans, program limits for dependent students are the same as for subsidized loans, minus amounts already borrowed through the subsidized program. The federal government does not pay interest on unsubsidized Federal Direct Stafford Loans while the student is in school. The student must pay for all interest that accrues during periods of enrollment, the grace period, and any periods of authorized deferment.