A promissory note is signed prior to disbursement.
Students have ten years to repay.
The different types of direct loans are described below. Students have ten years to repay the loans. Unsubsidized - Loans in the above amounts are available to all students regardless of need, but interest begins to accrue immediately at disbursement. Students may choose to make payments while enrolled or defer payment until they leave half-time study. This is a credit-based federal loan.