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Direct Loan Information

What Is A Direct Loan?

  • The William D. Ford Direct Loan Program was created by Congress and the U.S. Department of Education to help eligible students and parents, with and without financial need, pay for educational expenses.
  • A loan is money you borrow to pay for educational expenses and must be paid back with interest.
  • The U.S. Department of Education is the lender; however, it contracts with other companies and agencies to service your Direct Loans
  • You are can borrow a Direct Subsidized Loan and/or Direct Unsubsidized Loan if eligible.  Parents of dependent students can borrow the Direct Parent PLUS Loan if eligible.

What Types Of Loans Can I Borrow?

  • William D. Ford Direct PLUS Loans are borrowed by the parent of a dependent student.  The parent does not have to demonstrate financial need, but must not have an adverse credit history as determined by a credit check. [More]https://studentaid.ed.gov/sa/types/loans/plus
  • Private Education Loan private loans are made by private organizations such banks, credit unions, and state-based or state-affiliated organizations, and have terms and conditions that are set by the lender. Private student loans are generally more expensive than federal student loans.  [More]  https://studentaid.ed.gov/sa/types/loans/federal-vs-private

Do I Need To Borrow A Loan?

  • You are NEVER required to borrow a loan.  However, many students do borrow loans because educational costs are greater than grant, scholarship, agency funding or other gift aid received.


  • If your educational costs are more than the amount of other aid received, then you may CHOOSE to borrow a loan to pay the balance of your costs.

How Much Should I Borrow?

  • You will need to repay the amount of loan you borrow plus interest, so borrow only what you need to attend school.
  • The Financial Aid Office will help you determine the amount you should borrow.
  • If eligible, you may borrow more than the direct costs owed CTA.  You are encouraged not to borrow loans for living expenses if you can avoid it.

Direct Loan Interest Rates https://studentaid.ed.gov/sa/types/loans/interest-rates

Direct Loans Origination Fees https://studentaid.ed.gov/sa/types/loans/interest-rates

Where can I get more information about Direct Loans?

Go to https://studentaid.ed.gov/sa/types/loans