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Federal Direct Loans

Federal Direct Loans are loans that are borrowed from the Federal Government. There are four different types of federal direct loans:

Subsidized Loan

Loans from this program are awarded to students with financial need. This loan is subsidized because the federal government pays the interest while the student is in school and during the grace period (the first six months after leaving school or dropping to less than half time enrollment status).

Unsubsidized Loan

This loan is not based on financial need and is available to all eligible students, regardless of income. This loan is unsubsidized because the student is responsible for paying all interest due.

Parent PLUS Loan

A parent may borrow up to the annual cost of education minus any estimated financial aid received by the student. The application approval process includes a standard credit analysis for all parent borrowers.

Grad PLUS Loan

A graduate student may borrow up to the annual cost of education minus any estimated financial aid received by the student. The application approval process includes a standard credit analysis for all borrowers.
 

Note

UC Merced is required to provide information published by the U.S. Department of Education to students at any time that information regarding loan availability is provided. The publication includes information about rights and responsibilities of students and schools under Title IV, HEA loan programs. National Student Loan Data System (NSLDS) HEOA Section 489 amended HEA Section 485B(d)(4)

If UC Merced enters into an agreement with a potential student, student, or parent of a student regarding a Title IV, HEA loan are required to inform the student or parent that the loan will be submitted to the National Student Loan Data System (NSLDS), and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.