Direct Loan FAQs

Difference between Stafford Loans

  • 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.
     
  • 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 or 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 d uring all periods.