Federal Direct loans are provided by the U.S. Department of Education, at a fixed interest rate, to help you pay for your undergraduate or graduate education. Because they are backed by the U.S. government, the interest rates are lower than private loans.
How to Apply
Fill out the FAFSA. Your financial aid award letter will indicate if you’ve received a Federal Direct loan, and how much. You'll need to accept, decline, or revise (reduce) the loan through your Lesley Self-Service account.
About Federal Direct Loans
There are 2 types of Direct Loans you could receive—Unsubsidized and Subsidized.
Unsubsidized Loan
- For undergraduate and graduate students.
- The student is responsible for the interest that accrues.
- You can make voluntary interest payments while in school, or defer interest payments until they enter repayment.
We recommend you pay the interest when it’s billed each quarter. Otherwise, unpaid interest will be capitalized (added to the principal balance) at the end of the grace period, making the loan more expensive.
Subsidized Loan
- A need-based loan for undergraduate students.
- Interest is subsidized (paid) by U.S. government, up to a set maximum amount, while the student is in school or during grace periods.
- Interest doesn’t accrue while the student is enrolled at least half-time (taking 6 credits/semester).
Example: You get a $5,500 Direct Loan, and the maximum amount that can be subsidized is $3,500. That means you’d have a $3,500 subsidized loan and a $2,000 unsubsidized loan.
Considerations
Limits
There is a limit on how much you may borrow each academic year. For undergraduates, the limit is based on your dependency status and how many completed undergraduate credits are on your Lesley transcript. There is also a limit on how much federal loan funding you may borrow in total, called the “aggregate."
Origination Fee
The U.S Department of Education deducts this fee off the top of the loan before sending funds to Lesley University on your behalf.
Example: For a $5,000 loan with a 1 percent origination fee ($50), you’d get $4,950 to use toward your education.
Learn More
Learn more about Federal Direct Loans, including annual and aggregate limits, interest rates and fees, and terms and conditions.