Types of Federal Loans 

Federal Direct Subsidized Stafford Loan

The Federal Direct Subsidized Stafford Loan is awarded on the basis of a student's financial need and other specific eligibility requirements. The federal government does not charge interest on these loans while borrowers are enrolled in school at least half-time, during a six-month grace period, or during authorized periods of deferment. Payments are not required while borrowers are enrolled in school at least half-time, during a six-month grace period, or during authorized periods of deferment. Students apply for this loan through the FAFSA. This loan is subject to an origination fee that is set by the U.S. Department of Education.

Federal Direct Unsubsidized Stafford Loan

The Federal Direct Unsubsidized Stafford Loan is not based on a student's financial need, but students must also meet specific eligibility requirements. Interest is charged throughout the life of the loan. The borrower may choose to pay the interest charged on the loan or allow the interest to be capitalized (added to the loan principal). Payments are not required while borrowers are enrolled in school at least half-time, during a six-month grace period, or during authorized periods of deferment. Students apply for this loan through the FAFSA. This loan is subject to an origination fee that is set by the U.S. Department of Education.

Federal Perkins Loan

The Federal Perkins Loan is a fixed, 5% interest loan awarded on the basis of financial need demonstrated by the FAFSA. Students are encouraged to apply early for this loan, because funds are limited. Repayment begins nine months after a student ceases to be enrolled in school at least half time. Students apply for this loan through the FAFSA.

Federal Direct Parent PLUS Loan

The Federal Direct Parent PLUS Loan for an undergraduate student is not based on financial need and is limited to a parent borrower for a dependent student. A parent is currently defined as a person's natural or adoptive mother or father, step-parent, or legal guardian. The annual limit is equal to the student's cost of attendance, as defined by LSU, minus any other financial aid the student is receiving. Parents are required to pass a credit check and meet eligibility requirements. Students apply for this loan through the FAFSA, as well as through an additional application. This loan is subject to an origination fee that is set by the U.S. Department of Education.

Federal Direct Graduate PLUS Loan

The Federal Direct Graduate PLUS Loan for a graduate student is not based on financial need and is limited to a graduate/professional student. The annual limit is equal to the student's cost of attendance, as defined by LSU, minus any other financial aid the student is receiving. Students are required to pass a credit check and meet eligibility requirements. Students apply for this loan through the FAFSA, as well as through an additional application. This loan is subject to an origination fee that is set by the U.S. Department of Education.