What Is a Title IV Loan?

Title IV student loans help finance college for millions of people.
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Title IV of the Higher Education Act of 1965 authorizes the U.S. Department of Education to make loans, grants and work study programs available to postsecondary students. Each year, Title IV loans help millions of students attend school. Three Title IV student loan programs are available: William D. Ford Direct loans, Perkins loans and Direct PLUS loans.

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Title IV Loan Programs

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The William D. Ford Direct Student Loan program provides subsidized federal loans to undergraduate students. Subsidized means the federal government pays the loan interest while a student is in school. Unsubsidized loans are available to undergraduate and graduate students. Students don't have to start repaying Direct Loans until six months after they leave school. Perkins loans are unsubsidized loans for undergraduate and graduate students with severe financial need. These loans are made through the student's school and must be repaid to the school. Repayment doesn't begin until six months after the student leaves school. Direct PLUS loans are made to parents of dependent undergraduate students and to graduate or professional students. Direct PLUS loans are unsubsidized. Repayment begins 60 days after all of the loan money is disbursed.

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