Federal Direct Loan Program
Direct Loan details
Students and parents borrow directly from the federal government, and have a single contact — the Direct Loan Servicing Center — for everything related to repaying all loans, even if Direct Loans were made at different schools.
Borrowers have online access to Direct Loan account information 24 hours a day, 7 days a week, at Direct Loans on the Web.
Direct Loan benefits
UC San Diego's Financial Aid Office believes the long-term benefits of a stable fund source (the Department of Education).
Federal Direct Loans offer:
- Various repayment plans: income-based, income contigent, standard, graduated and extended
- A loan forgiveness program
- Interest rate reductions for borrowers with loans first disbursed on or after July 1, 2012, if their payments are automatically debited from their bank account
- Varied deferment options
- Easy qualification for Parent PLUS and Graduate PLUS loans
- A simplified loan process for borrowers
Types of Direct Loans
Federal Direct Loans are offered to both undergraduate students and their parents, and graduate/ professional school students.
- Subsidized: For students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time, during the grace period, and during deferment periods. No new subsidized loans will be made to graduate/professional students for periods of study beginning on or after July 1, 2012. Annual and aggregate loan limits for these students will not change.
- Unsubsidized: Not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods.
- PLUS: Unsubsidized loans for the parents of dependent students and for graduate/ professional students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.
- Consolidation: Eligible federal student loans can be combined into one Direct Consolidation Loan, once the student has graduated.