Loans are a form of financial aid that is borrowed and that must be repaid. An education loan is money borrowed to pay educational expenses.
Federal Direct Loan Program
This program is also referred to as the William D. Ford Federal Direct Loan Program. Eligible students and parents borrow directly from the U.S. Department of Education. Direct Loans consist of Subsidized and Unsubsidized Loans, Federal Direct PLUS Loans and Federal Direct Consolidation Loans. DigiPen Institute of Technology awards these loans, but students and parents repay them directly to the federal government.
Direct Subsidized Loans
This is a fixed-interest loan awarded to undergraduate students based on financial need as determined by the FAFSA. This loan is subsidized by the federal government who pays the interest on these loans while the student is enrolled more than half-time and during qualifying periods of deferment. Eligibility may be reduced if a student begins a program at another institution and transfers to DigiPen.
Federal Direct Unsubsidized Loans
This is a fixed-interest loan awarded to undergraduate and graduate students who complete a FAFSA, regardless of financial need.
This loan is unsubsidized during enrollment so interest will begin accruing immediately as funds are disbursed. Students can opt to either pay the interest as it accrues, or defer payment, in which case the interest is capitalized
Federal Direct Parent Loan for Undergraduate Students
This is a fixed-interest loan parents can obtain for their dependent undergraduate students if they have completed a FAFSA. These loans are unsubsidized, non-need-based loans awarded to parents of dependent undergraduate students. PLUS loans are capped at $20,000 per year. A separate application is required, and the borrower may not qualify if they have adverse credit history
Private Loans
Private Education Loans, also known as Alternative Education Loans, are student loans offered by private banks or other financial institutions. These loans are credit-based and may have variable interest rates. DigiPen Institute of Technology does not participate in any preferred lender arrangements, nor does it endorse any lenders.