direct federal loans

The Direct Loan Program provides low-interest loans to students and parents in which the lender is the U.S. Department of Education rather than a bank or other financial institution. Direct Federal Subsidized and Unsubsidized Loans are for students and do not require a credit check. Direct Federal Parent PLUS Loans are for parents of dependent students and require a positive credit history. Direct Federal Graduate PLUS Loans are for graduate (MA, MFA) students and require a positive credit history.

Direct Federal Subsidized Stafford Loan

The Direct Federal Subsidized Stafford Loan is available to eligible borrowers with financial need as determined by their FAFSA information. A majority of SFAI students are eligible for and borrow through the Direct Loan Program. Your maximum annual eligibility is automatically included on your award letter. Interest on the loan is paid by the government during the in-school, grace, and authorized periods of deferment for students who are enrolled at least half-time (6 units per semester). The repayment period begins 6 months after a student graduates, withdraws, or ceases to be enrolled half-time.

Direct Federal Unsubsidized Stafford Loan

The Direct Federal Unsubsidized Stafford Loan is available to eligible borrowers, regardless of financial aid need, who are enrolled at least half-time (6 units per semester). Direct Federal Unsubsidized Stafford Loans are included in all eligible students' award to help meet their educational costs. Students are responsible for paying the interest on the loan that accrues while in school. Students may opt to defer interest payments. By deferring interest payments, students continue to accrue interest which then is capitalized. Please note that capitalization generally results in more interest paid over the life of the loan. Repayment period begins 6 months after a student graduates, withdraws, or ceases to be enrolled half-time.

Direct Federal PLUS Loan for Graduate Students and Parents of Dependent Undergraduate Students

Eligible borrowers are credit-worthy graduate students or parents of dependent undergraduate students who are U.S. Citizens, Permanent Residents, or Eligible Non-Citizens. The maximum you or your parent may borrow is included on your financial aid award letter. Borrowers must apply for the loan directly through the Department of Education and receive credit approval.

For additional information, please visit the U.S. Department of Education's Direct Loan website.