There are two types of Federal Direct Student Loans:
The Subsidized Loan is a low-interest loan based on financial need as determined by the government. This loan does not have to be repaid until six months after you graduate or drop below half-time status. If you qualify for a Subsidized Loan, the government will pay the interest for you during the following periods:
- while you are enrolled in school at least half-time (6 hours);
- during the six-month grace period after you graduate or stop attending school at least half-time;
- during periods of authorized deferment.