Loans

Federal Direct Student Loans

Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school.

The U.S. Department of Education offers eligible students at participating schools Direct Subsidized Loans and Direct Unsubsidized Loans.

Interest is the additional money charged to a student for using the loan funds while in school. For example, if there is a 5% interest on a $5,000 loan, the amount that requires repayment would be $5,250.

There are two different types and the differences can affect how much a student must eventually repay.

There are annual and lifetime maximums on each type. More information on Federal Direct Student Loans can be found on the Federal Student Aid website.

• Subsidized: The interest on this loan is paid by the federal government while the student is enrolled in college.
• Unsubsidized: The interest on this loan accrues while the student is in college but does not require repayment until student is no longer enrolled in at least 6 credit hours.

Federal Direct Parent Loan for Undergraduate Students (PLUS)

The Department of Education makes educational loans available to biological or adoptive parents for enrolled college students.

These loan awards do require repayment and are approved based on the credit of the parent. The maximum loan amount is the cost of attendance minus any other financial aid received.

More about information about PLUS can be found on the Federal Student Aid website.

Federal Graduate PLUS

The Department of Education makes educational loans available to graduate or professional students enrolled at least half-time at an eligible college, such as East Stroudsburg University, in a program leading to a graduate or professional degree or certificate. More information about Graduate PLUS can be found on the Federal Student Aid website.