The loan terms for the Direct Loan program are the same as with the Stafford Loan program. Students will now be able to work directly with the Financial Aid Office during the loan process rather than having to deal with loan guarantee agencies and banks. The federal government pays the interest that accrues while the student is enrolled in school. Repayment begins six months after the student graduates, withdraws, or attends school less than half-time. Interest begins accruing immediately.
Students are responsible for the payment of interest while in school.
Payment of interest may be deferred until after the student graduates, withdraws, or attends school less than half-time. If interest is deferred, it is added to the principal, increasing the amount on which future interest is calculated. The Federal Direct PLUS Loan program replaces the Federal Family PLUS Loan program at UCSB, thus, banks, credit unions, and other lending institutions do not participate. The loan terms for the Federal Direct PLUS Loan program are the same as for the Federal Family PLUS Loan program. A Federal Pell Grant, unlike a loan, does not have to be repaid.