Direct Subsidized Loans
Also known as Federal Direct Student Loans, are awarded based on financial need. The Academy determines financial need, in part, from the information provided on the Financial Aid Application. With a Direct Subsidized Loan the federal government does not charge interest before repayment or during authorized periods of deferment.
Direct Plus Loans
Also called the Federal Parental Loan for Undergraduate Students, helps parents pay their dependent children’s educational expenses, if they qualify. Parents may borrow up to the amount of the cost of attendance minus any other Financial Aid received. The federal government charges interest from the date the first disbursement is made until the loan is paid in full.
Direct Unsubsidized Loans
Also called Federal Direct Student Loans, are not awarded on the basis of need. An eligible student may borrow up to the cost of attendance minus any other financial aid received. However, the student may not borrow more than the maximum annual amount. The federal government charges interest from the time the loan is paid out until the loan is paid in full.
Direct Consolidation Loans
Direct Consolidation Loans simplifies repayment by combining one or more federal education loans into one new direct consolidation loan. If loans are combined into a Direct Consolidation Loan, there is only one loan, one payment point, and one monthly payment. Interest rates for Direct Subsidized, Direct Unsubsidized, and Direct Plus loans are variable and may change each year of repayment. Interest rates for Direct Consolidation Loans are fixed. By law, interest rates will not exceed 8.25% for Direct Loan and 9% for Direct Plus and Direct Consolidation Loans. If you have any questions about your FSA program funds, you can call the Federal Student Aid Information Center at (800) 433–3243 from 8am to 12am, seven days a week.