What types of federal student loans are there?

Direct Stafford Loan Program

  • Subsidized
  • Unsubsidized

Direct Stafford Loans (DL) are financial aid funds that must be repaid after completing a program of study or being enrolled less than half time. These federal educational loans have moderate fixed interest rates and multiple repayment options, which make them easier to repay than most non-educational loans and other forms of credit. But because loans must be repaid from future earnings, Cañada College recommends that students use all other possible resources first and borrow only when it is absolutely necessary.

Students who are planning to transfer to four-year colleges should be aware that loans are often the largest portion of a financial aid package and should consider total educational indebtedness before borrowing at the community college level.

Students may request a loan by completing the FAFSA and a Loan Request Packet.

To learn the steps for applying for a Federal Direct Student Loan, please visit our Loan Page.

Subsidized: for undergraduate students with demonstrated financial need, as determined by federal methodology. The U.S. Department of Education pays the interest while you are enrolled in school at least half-time, during the grace period, and during deferment periods.

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