There are two types of Federal Direct Loans: subsidized and unsubsidized. FDLs replace the Federal Stafford loans, which were also known as Guaranteed Student Loans.

Learn more about the loan process and receive sample repayment schedules by contacting the Student Financial Aid Services.

Subsidized FDLs

What they are: These are need-based low-interest loans from the U.S. Department of Education, administered by NJIT.

Who can borrow: U.S. citizens and permanent U.S. residents enrolled at least half-time, who demonstrate financial need after all other awards (grants and scholarships, and federal work-study) are considered.

Maximum amount: Freshman = $3,500; sophomore = $4,500; junior or senior = $5,500; graduate = $8,500. All amounts are per semester.

Repayment: Payment is deferred as long as you are enrolled at least half-time; after deferment, there is a six-month grace period.

Interest: The interest rate is variable, capped at 8.25% and adjusted each year on July 1. Interest is paid by the government while you're enrolled at least half-time, in your grace period, or in a period of deferment.

How to apply: Complete the FAFSA or Renewal FAFSA.

Other requirements: First-time borrowers must sign a Master Promissory Note (MPN) and participate in loan entrance counseling (a USDE requirement).

Other notes: Upon receipt, you can accept or reject these loans in whole or in part, just as with any other financial assistance. Always accept subsidized loans first. The federal government withholds 1.5% of the loan principal as an origination fee to defray the costs of administering the loan programs.

Unsubsidized FDLs

What they are: These are low-interest loans from the U.S. Department of Education. They are administered by NJIT.

Who can borrow: US citizens and permanent US residents enrolled at least half-time who do not qualify for the need-based subsidized loan can apply, as can independent students who can borrow in addition to the subsidized maximums.

Maximum amount: If your parents' PLUS loan application was denied the maximums are as follows: freshman or sophomore = $4,000; junior or senior = $5,000; graduate = $10,000; plus the remaining amount not eligible to receive in a subsidized loan.

Repayment: Payment is deferred as long as you're enrolled at least half-time; after deferment, there is a six-month grace period.

Interest: The rate is variable; it is capped at 8.25 percent, and adjusted each year on July 1. It accrues while you are in school, but it can be capitalized to postpone payment.

How to apply: Complete the FAFSA or Renewal FAFSA.

Other requirements: First-time borrowers must sign a Master Promissory Note and participate in entrance counseling (a USDE requirement).

Other notes: Upon receipt, you can accept or reject these loans in whole or in part, just as you can with any other financial assistance. Always accept subsidized loans first. The federal government withholds 1.5 percent of the loan principal as an origination fee to defray the costs of administering the loan programs.