What is a Direct Subsidized Loan?
This is the largest educational loan program at UNLV; the formal title of the program is the William D. Ford Federal Direct Stafford Loan. Funds are provided by the U. S. Treasury. These are insured by the federal government and have replaced the Federal Stafford Loan. Do I have to have financial need to receive a Direct Subsidized Loan? In order for the federal government to pay the interest on your loan while you are in school, you must have financial need. You would be eligible for a Direct Subsidized Loan. So, I don’t have to have financial need to get a student loan? That’s correct. Students without financial need may borrow a Direct Unsubsidized Loan (officially called the William D. Ford Federal Direct Unsubsidized Loan.) The borrower, not the federal government, is responsible for paying the interest on this loan; however, the program allows borrowers to defer the interest payment until the borrower is no longer enrolled on at least a halftime basis. Are there other eligibility
Related Questions
- What if I have exhausted my annual Federal Direct Subsidized/Unsubsidized Loan eligibility and I still have not reached the cost of attendance? How do I secure additional loans?
- Must a school determine a students eligibility for a subsidized Federal Stafford Loan before determining a parent borrowers eligibility for a Federal PLUS Loan?
- What is the difference between a subsidized loan and unsubsidized loan?
