Federal Direct Loan Program
The William D. Ford Direct Loan program, provided through the U.S. Department of Education, includes both Direct Stafford (student) loans and Direct PLUS (parent) loans. There are two types of Direct Stafford loans - subsidized and unsubsidized. The Subsidized Stafford loan is a loan for which the federal government will make the interest payments on the loan while you are in school and during other approved periods of deferment.
The Unsubsidized Stafford loan is a loan for which the student is responsible for the interest from the time the loan is disbursed until it is paid in full. You can choose to pay the interest or allow it to accrue (accumulate) and be capitalized (i.e., added to the principal amount of your loan). Capitalizing the interest will increase the amount you repay.
For student loans, the annual interest rate is 3.73% for both subsidized and unsubsidized loans for the 2021-2022 academic year. Parent loans are awarded based on credit worthiness. These loan programs are for students who are attending college at least half-time (6 or more approved units) and who are eligible to receive financial aid.
Los Angeles Mission College does not automatically award federal loans. Students who are interested in loans should contact the Financial Aid Office at 818-364-7648 or visit the Student Loan Process page. NSLDS Disclosure: Any loan borrowed by the student or parent will be submitted to the National Student Loan Database System (NSLDS) and will be accessible by guarantee agencies, lenders and schools determined to be authorized users of the data system.