FEDERAL DIRECT LOANS Federal Direct Loans are low-interest loans from the U.S. Department of Education that are administered by Claremont McKenna College.  It is the U.S. Department of Education's major form of self-help aid and is available through the William D Ford Federal Direct Loan Program.  There are two types of Federal Direct Loans: subsidized and unsubsidized.  Federal Direct Loans replace the Federal Stafford Loans which were formerly known as Federal Guaranteed Student Loans.

Types of Direct Loans
There are two types of Direct Loans that you may be offered based on your financial need.

Federal Direct Subsidized Loans:
If you are eligible to borrow from the subsidized loan program, interest will not begin accruing until six months after you graduate or withdraw from school.  Six months after you graduate or withdraw, you will begin paying back the interest and principal on the loan/s.

• The interest rate is fixed at 3.4% for undergraduate students and 6.8% for graduate students
• A 1.0% origination fee is applied with an upfront 1% rebate at origination
• The minimum monthly repayment amount is $50 but may be more depending on your total amount borrowed

Federal Direct Unsubsidized Loans:
If you are eligible to borrow from the unsubsidized loan program, interest will accrue while you are in school.  Six months after you graduate or withdraw from school, you will begin to pay back accrued interest and principal.

• The interest rate is fixed at 6.8% for both undergraduate and graduate students
• A 1.0% origination fee is applied
• The minimum monthly repayment amount is $50 but may be more depending on your total amount borrowed

Maximum Loan Amounts 
How to Apply 
Exit Counseling
Direct Loan Repayment Calculator  
Additional Information