Issue link: http://ncumarketing.uberflip.com/i/989117
William D. Ford Direct Federal Loan (Direct Loan) Facts • Loans in this program are often called "Direct Loans," "Stafford Loans" or even "Direct Stafford Loans." These are all acceptable ways to refer to loans from this program. • There are four types of loans under this program: Direct Subsidized, Direct Unsubsidized, Direct PLUS and Direct Consolidation. > Direct Subsidized Loans are for undergraduate students based on financial need. These also have low interest which is covered by the government while you're in school and under some other special circumstances. > Direct Unsubsidized Loans are for undergraduate and professional students and are not based on financial need. You must pay the interest on unsubsidized loans, although you may be able to delay repayment under special circumstances. > Direct PLUS Loans can be made to graduate students or even parents. > Direct Consolidation Loans are intended to combine your existing loans under a single loan servicer, simplifying the payback process. • The U.S. Department of Education is the lender under this program, not a private bank. • Sometimes loan information is provided alongside your financial aid offer, so you may see loan offers even without directly inquiring about them. • All loans, regardless of the type or source, must be repaid. Federal Perkins Loan Facts: • You must demonstrate financial need to be eligible for this type of loan. • Both undergraduate and graduate students may apply for a Perkins Loan. • The lender for this type of loan is the school, not the federal government. • Not every educational institution offers this type of loan.