Q&A 

Who qualifies for a direct loan?

Author

Who qualifies for a direct loan?

Am I eligible for a Direct Subsidized Loan or a Direct Unsubsidized Loan? To receive either type of loan, you must be enrolled at least half-time at a school that participates in the Direct Loan Program. Generally, you must also be enrolled in a program that leads to a degree or certificate awarded by the school.

What is considered a federal direct loan?

A federal Direct Loan is a federal student loan made directly by the U.S. Department of Education. Generally, if you took out a federal student loan or consolidated your loans on or after July 1, 2010, you have a federal Direct Loan. Direct Subsidized Loans. Direct Unsubsidized Loans.

How much is a federal direct loan?

How much money can I borrow in a federal Direct Loan? Federal Direct Loan borrowing limits vary depending on the Direct Loan type and student status. Dependent undergraduate students may borrow up to $31,000 total in Direct Loans, $23,000 of which may be subsidized.

Who is eligible for a federal subsidized loan?

To be eligible for a subsidized loan, you must: Be an undergraduate student. Be able to prove financial need. Be enrolled at a school at least half-time.

What do you need to complete in order to qualify for a federal student loan?

Basic Eligibility Criteria

  1. demonstrate financial need (for most programs);
  2. be a U.S. citizen or an eligible noncitizen;
  3. have a valid Social Security number (with the exception of students from the Republic of the Marshall Islands, Federated States of Micronesia, or the Republic of Palau);

Is a Stafford loan a direct loan?

Stafford Loans are made under the Federal Direct Loan Program.

Do you have to pay back a federal direct loan?

Once you graduate, drop below half-time enrollment, or leave school, your federal student loan goes into repayment. However, if you have a Direct Subsidized, Direct Unsubsidized, or Federal Family Education Loan, you have a six-month grace period before you are required to start making regular payments.

Do you have to pay back a direct loan?

Is a school loan a federal loan?

Visit studentaid.gov to find out whether your student loans are federal. Most student loans are federal.

Is a Plus loan a federal loan?

Direct PLUS Loans are federal loans that graduate or professional students and parents of dependent undergraduate students can use to help pay for college or career school. PLUS loans can help pay for education expenses not covered by other financial aid.

How do you apply for a federal loan?

In order to apply for federal student loans, you must complete and submit a Free Application for Federal Student Aid ( FAFSA ). Based on these results, your college or career school will send you a financial aid letter, which may or may not include an offer of federal student loans.

What is FAFSA and how does it work?

The main purpose of the FAFSA is to collect a student’s (and often his or her parents’) financial information to calculate something called the Estimated Family Contribution (EFC). The EFC is the amount that a family can reasonably afford to pay each year for higher education.

What is a direct loan?

Answer: A federal Direct Loan is a federal student loan made directly by the U.S. Department of Education. Generally, if you took out a federal student loan or consolidated your loans on or after July 1, 2010, you have a federal Direct Loan. There are four types of Direct Loans: Direct Subsidized Loans.