Federal Direct Loan Program

The Higher Education Amendments of 1992 extended borrowing opportunities to all families, regardless of income or need. Students are eligible to borrow through the Federal Direct Student Loan Program, and parents may borrow through the Federal Direct Parent PLUS Loan Program. Interest subsidy for Federal Direct Student Loans, however, is restricted to those borrowers who demonstrate eligibility based on the Federal Methodology. The Free Application for Federal Student Aid (FAFSA) is required for any type of Federal Direct Loan (student or parent). The combined Federal Direct Student Loans, PLUS and other student aid cannot exceed the cost of attendance. Federal Direct Student Loans are available only to United States citizens or to noncitizens that have permanent resident status.