How can federal direct loans help you afford college?

a male student in a ball cap stands under the iconic brick gate, smiling The William D. Ford Direct Lending Program makes educational funding available to students and their families.

This federal student loan program covers four types of federal direct loans:

  1. Direct Subsidized Loans
  2. Direct Unsubsidized Loans
  3. Direct PLUS Loans (for parents)
  4. Direct PLUS Loans for Graduate Students

Direct Subsidized Loans

These loans are available to eligible undergraduate students who demonstrate financial need. The federal government covers the interest under certain conditions:

  • During a period of deferment
  • For the first six months after you leave school
  • While you’re in school, registered at least as a half-time student

Direct Unsubsidized Loans

These loans are available to undergraduate and graduate students with no requirement to demonstrate need. Wingate University determines how much you can borrow based on the cost of attending and any other aid you receive. You are responsible for covering the loan’s interest. You can receive a loan each year, but the limit may change. You start paying it back six months after you graduate, leave school or start attending school less than half-time. Several payment plans are available.

How Much?

Undergraduate students can borrow up to $12,500 per year in Direct Subsidized and Unsubsidized Loans, which is determined based on the results of the FAFSA. Parents can borrow the remainder of their child’s college costs not covered by other financial aid through a Direct PLUS Loan.

How to Get a Loan

To apply for federal direct loans, you must complete the FAFSA. Once you receive your aid package from Wingate University, you’ll have to complete loan entrance counseling, sign a master promissory note, and submit a loan acceptance form.