Federal Direct Loans

Federal Direct Loans include Subsidized and Unsubsidized loans, the PLUS loan for Parents of undergraduate students (Parent PLUS), and the PLUS loan for Graduate Students (Grad PLUS).

Federal Direct Subsidized and Unsubsidized Loans

Federal Direct Subsidized and Unsubsidized Loans are available through the William D. Ford Federal Direct Loan Program to help pay for educational expenses. The Penn State Office of Student Aid awards Subsidized or Unsubsidized Loans (or a combination of both), based on financial need as determined by the FAFSA.

Federal Direct Graduate PLUS Loan

As a graduate or professional student, you may need to borrow more than the Direct Unsubsidized Loan to pay for your education. The Direct Graduate PLUS Loan can help. The Direct Graduate PLUS Loan offers flexible loan limits and a fixed 7.54% interest rate for the 2022-23 school year.

Federal Direct Parent PLUS Loan

The Direct Parent PLUS loan is a federal loan available to the parents of dependent undergraduate students. The Direct Parent PLUS Loan offers flexible loan limits and a fixed 7.54% interest rate for the 2022-23 school year. Eligibility is determined by the applicants credit history.

Federal Direct Loans and Default

Default status occurs when a borrower fails to repay a loan according to the terms of the signed promissory note.

Student loan Debt Summary

Resources to help manage your student loan debt.