Federal Direct Loans
Direct Subsidized Loans, also called Federal Direct Stafford/Ford Loans: The federal government will pay the interest on these loans while students are in school and during deferments (postponements of repayment). Students must demonstrate financial need as determined by the school in accordance with federal regulations to receive this type of loan. No repayment is required when in school at least half time, or during grace or deferment periods. Starting July 1, 2012, undergraduate students, students seeking a teaching credential, and students seeing a 2nd Bachelors' degree will be the only students eligible for these loans.
Direct Unsubsidized Loans: Students can get these loans regardless of financial need but will have to pay all interest charges, including the interest that accumulates during deferments. This loan shares the same terms and conditions as the Subsidized Federal Direct Loan, except the borrower is responsible for interest payments from the time the loan is disbursed. Borrowers are not obligated to pay the interest as it accrues during in-school, grace or deferment periods, but may do so to limit the interest that will be capitalized upon entering repayment. Eligibility is determined by subtracting estimated financial assistance from the cost of attendance. This type of loan may be used to replace all or part of an expected family contribution. Combined subsidized and unsubsidized loans may not exceed federal loan limits.
Federal Direct PLUS Loans -parents may borrow for their student dependents (only for students who are considered dependent for Title IV financial aid purposes). The parent is responsible for the loan repayment. Parents who do not have an adverse credit history may borrow up to the total cost of the student's education, minus any other aid received by the student. Payments begin within 60 days of the award year's last PLUS disbursement, or parents may choose to defer payments on the Direct PLUS Loan until six months after the date the student ceases to be enrolled at least half-time; may pay accruing interest monthly or quarterly, or allow interest to be capitalized quarterly.
Graduate Direct PLUS Loans- additional unsubsidized loans available to students enrolled in graduate or professional programs. These loans are available regardless of financial need and the amount of eligibility depends on the total cost of education. The interest rate is fixed at 7.9%; the borrower may not have an adverse credit history. Normally, repayment begins 60 days after the award year’s last PLUS disbursement, however, repayment may be postponed while enrolled at least half-time if qualified for an in-school deferment. There is NO grace period on PLUS loans. Most HSU Master’s students will meet their cost of attendance by borrowing through the Subsidized and Unsubsidized Direct Loan at a 6.8% fixed rate and better repayment terms; if these loans are insufficient to cover the cost of attendance, please contact the Financial Aid Office for information on the graduate Direct PLUS program.
Direct Loan Interest Rates
Current Direct Loan interest rates are available from the Department of Education.