Borrower is parent of a dependent undergraduate student
Can be discharged in the event of death or disability
Parent must pass a credit check. If parent does not pass credit check, student can get additional Direct Unsubsidized Loan or parent can add a credit-worthy endorser (co-signer).
Can borrow up to the cost of education less any other aid received
6.84% fixed interest rate for 16-17 year
Federally mandated 4.292% fee subtracted upon disbursement for 16-17 year
Repayment begins 60 days after loan is fully disbursed but payment can be deferred while student is enrolled. Parent must contact Direct Loan Servicing at 800-848-0979 to request deferment or indicate preference on loan application.
To apply, log into www.studentloans.gov. The Student Financial Services Office will be notified of the credit decision within 1-3 days