<h2>Federal Direct Loans</h2>
<p>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. <strong><em>Subsidized Direct Loans</em></strong> 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. <strong><em>Unsubsidized Direct Loans</em></strong> are not based on financial need, and the borrower is responsible for the interest throughout the life of the loan.</p>
<p>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. <br /><br />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, 2009 , have a fixed interest rate of 6.8% 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 <a href="https://studentloans.gov/myDirectLoan/index.action" target="_blank">StudentLoans.gov</a>. Continuing Direct Loan borrowers may also need to complete a new MPN. <br /><br /><strong><em>To apply, please visit <a href="https://studentloans.gov/myDirectLoan/index.action" target="_blank">StudentLoans.gov</a>.</em></strong></p>
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