Federal Direct Loans

Federal Direct Loans Overview

Federal Direct Subsidized and Unsubsidized Loans are provided by the US Department of Education (DoE) under the Higher Education Act to help students cover education costs.

Subsidized Loans: For students with demonstrated Financial Need (FN). No interest charged while enrolled at least half-time (6 credits or more).
Unsubsidized Loans: No FN requirement. Interest accrues from full disbursement, but students can optionally pay interest while still in school.

Learn more about borrowing limits, eligibility, and interest rates here.

Loan Repayment Information

Repayment for Federal Direct Loans begins six months after you graduate, withdraw, or fall below half-time enrollment. This is known as the grace period.

Loan Servicer Assignment: The DoE will assign a servicer, who manages your payment plan. Your servicer information will appear on your StudentAid profile.

Details about repayment plans are available here.

Deferment Options

Once your loan enters repayment, you may be able to defer payments under certain conditions, including:

Enrollment in school (half-time or more)
Unemployment
Economic hardship

You’ll need to request deferment through your loan servicer.

Delinquency and Default

If you're having trouble making payments, contact your loan servicer immediately. Missing payments may lead to delinquency or even default.

Learn more about delinquency and default.

Default Rates

The DoE tracks default rates by school. Riverland’s most recent three-year cohort default rate (2021) was 0.0%.
For national cohort default rates and institution specifics, visit the Federal Student Aid default management site.