Students who complete the FAFSA are automatically considered for the Federal Direct Loan program. To be eligible you must meet a number of requirements, including (but not limited to):
With a need-based Direct Subsidized Loan, the federal government pays the interest that accrues while you are in school. On a non-need-based Direct Unsubsidized Loan, interest accrues while you are in school.
For the 2016-2017 academic year, the interest rate is fixed at 3.76% for both the Federal Direct Subsidized and Unsubsidized Loans.
Parent Loans for Undergraduate Students (PLUS) are available to parents of dependent students who wish to borrow additional monies to cover the cost of their child’s education. These loans may be applied toward additional education expenses not covered by other forms of financial aid. Students and parents must complete the FAFSA to be eligible for a PLUS loan.