Federal loan, direct loan program
The U.S. Department of Education offers a federal student loan program for eligible students to help cover the cost of higher education. There are two types of federal student loans for students at participating schools: Direct Subsidized Loans and Direct Unsubsidized Loans. Direct Subsidized Loans are available to undergraduate students with financial need. Your chosen college determines the amount you can borrow, and the amount may not exceed your financial need. The U.S. Department of Education pays the interest on a Direct Subsidized Loan while you’re in school at least half-time and for the first six months after you leave school. Students are responsible for interest payments on Direct Unsubsidized Loans starting immediately after they receive the funds.