Columbia Central

Federal Direct Loans

Direct Loans are low-interest loans for students, and parents of dependent students, to help pay for the cost of a student's education after high school. Students must be registered for at least six credit hours in order to be eligible for the Federal Direct Loan Program, which is administered by the U.S. Department of Education. 

The maximum amount students can borrow each year in Direct Subsidized and Unsubsidized Loans depends on their year in school, and on whether they are dependent or independent students. For more information, visit studentaid.gov. 

• Direct Subsidized Loans

  For: undergraduate students with demonstrated financial need.

  Financial need is determined by the student’s Free Application for Federal Student Aid (FAFSA). No interest is charged while a student is in school at least half-time, during the grace period and during deferment periods.

• Direct Unsubsidized Loans

  For: both undergraduate and graduate students.

  Unsubsidized loans are not based on financial need. Interest is charged during all periods, even during the time a student is in school and during grace and deferment periods. 

• Direct Parent PLUS Loans

  For: parents of dependent students

  PLUS loans, which are unsubsidized, help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.

  Applicants may borrow up to the student's cost of attendance minus other financial aid awarded. Borrowers must submit an application, and a credit check will be performed on the borrower to establish credit worthiness. Loan funds are sent to the school and applied directly to the student's account. 

  Parent borrowers begin repayment within 60 days after the loan is fully disbursed. Deferment options are available. Inactive awards (no application submitted) will be removed from the financial aid award after 60 days. 
  
  Parents can find out more information about PLUS loans at studentaid.gov or our PLUS Loan FAQ page. To complete a PLUS Loan Application, visit the Resource Center. 

  Do you have more questions about borrowing loans as a parent? Review FAQs here. 

• Direct Graduate PLUS Loans

  For: graduate students

  PLUS loans, which are unsubsidized, help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.

  Applicants may borrow up to the student's cost of attendance minus other financial aid awarded. Borrowers must submit an application, and a credit check will be performed on the borrower to establish credit worthiness. Loan funds are sent to the school and applied directly to the student's account. 

  To complete a PLUS Loan Application, visit the Resource Center.