The William D. Ford Federal Direct Stafford Loan (Direct Loan) Program is the best financing option for a student to pursue, and should be considered before any private educational loan options.  The loan is available to students regardless of the level of financial need. Direct Loans are funded by the U.S. Department of Education through Villanova University and are managed by federal loan servicers, under the supervision of the Department of Education. 

Subsidized Loan

This federal education loan is available to students who demonstrate financial need. It is available to students accepted/enrolled on at least a half-time basis in an undergraduate program. The Direct Subsidized Loan is designed to provide students with the opportunity to participate in paying for college. It is available to students who are determined eligible on the basis of financial need. The advantage of a Direct Subsidized Loan is that interest does not accrue while the student is enrolled at least half-time.

• Students who demonstrate financial need based on the FAFSA will qualify for the Federal Direct Subsidized Loan.
• Annual Loan Limits (see charts)
• Interest rates may be adjusted each year on July 1.
• Disbursement will be made directly to the students' account.
• First-time borrowers are required to complete an Entrance Counseling interview before funds are credited to the student's account. Entrance Counseling may be completed online at www.studentloans.gov.
• Fees are deducted from the loan at time of disbursement.
• Repayment of the Direct Loan begins six months after the student leaves the University or is no longer enrolled at least half-time.
• The student has up to 10 years to repay.
• The maximum subsidized loan amount per year is based on grade level.
• Upon graduation students must complete exit counseling at www.studentloans.gov.

Unsubsidized Loan

This federal education loan was established by the federal government for students who are not eligible or have limited eligibility for the Subsidized Direct Loan. Students may borrow under the same terms as the Subsidized Direct Loan program with one exception; the government does not pay the interest on an Unsubsidized Loan (note: see difference in interest rate below).  The student either pays all interest that accrues on this loan during the time of enrollment, grace period and repayment, or may capitalize the interest during the period of enrollment.

The Direct Unsubsidized Loan is designed to provide students with the opportunity to participate in paying for college. It is available to students regardless of financial need. Interest will begin to accrue at the time of disbursement.

• Annual Loan Limits
  
• Dependent students whose parents are not approved for the Direct PLUS Loan may borrow additional funds through the Direct Unsubsidized Loan Program, based on the student's grade level.
• Interest rates are adjusted each year on July 1.
• Disbursement will be made directly to the students' account.
• First-time borrowers are required to complete an Entrance Counseling interview before funds are credited to student's account. Entrance Counseling may be completed online at www.studentloans.gov.
• Fees are deducted from the loan at time of disbursement.
• Repayment of the Direct Loan begins six months after the student leaves the University or is no longer enrolled at least half-time.  Interest payments can be made while enrolled or the interest will capitalize onto the principle balance.
• The student has up to 10 years to repay.
• The maximum unsubsidized loan amount per year is based on grade level.
• Upon graduation, students must complete exit counseling at www.studentloans.gov.