Loans are borrowed money that must be repaid with interest. The U.S. Government offers low-interest loans under the William D. Ford Direct Loan Program. Direct Stafford Loans, from the William D. Ford Federal Direct Loan Program, are low-interest loans for eligible students to help cover the cost of higher education at a four-year college, university, community college, trade, career or technical school. Eligible students borrow directly from the U.S. Department of Education at participating schools.

Federal Stafford Loans are offered in two forms, subsidized and unsubsidized. Subsidized loans are awarded on the basis of financial need and students pay no interest on the loan until they enter a repayment period. Unsubsidized loans are not based on financial need and students are responsible for paying accrued interest throughout the life of the loan. Nearly all students are eligible to receive Stafford loans regardless of credit.

Additional loan types provided under the Direct Loan Program include Direct PLUS Loans (for parents) and Direct Consolidation Loans (to combine federal education loan debts into a single loan).

For information on Direct PLUS Loans for Parents click here. To see if you are eligible for greater loan amount please check the independent status guidelines.