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The Federal Direct Loan is a low-interest education loan for both undergraduate and graduate students. These loans are a cost-effective way to help finance higher education. There are two types of loans: subsidized and unsubsidized. The type of Federal Direct Loan that you receive is determined by your FAFSA results.

A subsidized Federal Direct Loan is awarded on the basis of financial need. The government pays the interest while you are in school. An unsubsidized Federal Direct Loan is available to all students regardless of income. The borrower is responsible for interest that accrues while in school, while the loan is in deferment, and during the grace period.

There is a limit to the amount you can borrow with a Federal Direct Loan during any given year. Read about annual and aggregate loan limits. Repayment begins six months after you graduate, complete your education or are no longer enrolled for at least six credits.

Application Process

You can expect to follow these steps to apply for a Federal Direct Loan:

  • File your FAFSA on the web.
  • Point Park University will receive the results and note the maximum Federal Direct Loan eligibility (based on financial need and grade level) and determine the type of loan, subsidized and/or unsubsidized. You will receive this information detailed in your financial aid award letter.
  • Point Park University will notify you when to complete the Master Promissory Note and entrance counseling if required at You will need your Federal Student Aid ID number to complete this process.