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Federal Direct Loans

To help with expenses related to higher education, the federal government offers students a low-cost loan called the Federal Direct Loan. There are two types of Direct Loans: subsidized and unsubsidized. Subsidized Direct Loans are awarded based on financial need. The government pays the interest while the student is in school, during the grace period and during authorized periods of deferment. Unsubsidized Direct Loans are not based on financial need, and the borrower is responsible for the interest throughout the life of the loan.

Due to changes in the Federal regulations, beginning Fall 2012, graduate/professional students will no longer be offered subsidized loans. Annual loan limits have not changed, only the elimination of the subsidized loan eligibility.

Loan amounts are determined by the SIUE Office of Financial Aid, based on the student's academic level and the total amount of Direct Loans he/she has borrowed. Loans made after July 1, 2015 and before June 30, 2016 have a fixed interest rate of 5.84% and repayment begins 6 months after the student graduates, leaves school or drops less than half-time. All first-time borrowers must complete a Master Promissory Note (MPN)and Entrance Counseling. These can be completed by visiting Continuing Direct Loan borrowers may also need to complete a new MPN.

To apply, please visit

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