In order to receive a student loan which belongs to one of these two types, you must be a person who is enrolled at a school which participates in Direct Loan program for at least half-time. In general you must enroll to a program which will lead you to a degree or certificate in the school.
The direct subsidized loans will be granted to the undergraduate students who have financial needs while the unsubsidized loans will be available to both the undergraduates and graduates and also for the professional degree students. If you want to receive a direct unsubsidized loan, you do not have to show your financial need.
For a first time borrower on the date of July 1st, 2013 or after that, there exists a limit on the maximum time period which will be measured in academic years to receive this direct subsidized loan. But this limit does not exist for the direct PLUS loans or direct unsubsidized loans. If you are a person having this limit, you will not receive direct subsidized loans more than 150% of the length which is published in the program. And this is known as your maximum eligibility period. This particular period depends on the current published length of the program. This can be found in your school catalog.
In order to apply to a direct loan, the application known as Free Application for federal student aid must be completed and submitted. And with the information included in this, the school will decide on the amount of student aid you will be able to receive. The school will determine the types of student loans you can get and it will also decide on the amount you can actually get in every academic year. But there are limits which will be applied to these subsidized and unsubsidized loans. There will be limits for the total amounts the undergraduate and graduate students will get. The actual loan amount you will be receiving in every academic year will be an amount which is less than the annual loan limit. The limits that are applying depend on various factors. Those factors are the year you are in your school and whether you are an independent or dependent student. For the dependent students whose parents are not eligible for direct plus loans, they have the chance of getting additional direct unsubsidized loan funds.
There are student loan interest rates which will be applied for these two types of loans. The borrower type of Direct Subsidized Loans which is undergraduate has an interest rate of 3.86% for the loans that are first disbursed on or after the date 7/1/2013 and before 7/1/2014 and for the loans that are first disbursed on or after 7/1/2014 and before 7/1/2015, the interest rate will be 4.66%.
The same interest rates apply for the Direct Unsubsidized Loans where the borrower type is Undergraduate. The borrower type which is graduate or professional of Direct Subsidized Loans has an interest rate of 5.41% for the loans that are first disbursed on or after the date 7/1/2013 and before 7/1/2014 and for the loans that are first disbursed on or after 7/1/2014 and before 7/1/2015, the interest rate will is 6.21%.
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