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What is a federal direct student loan? This is loan that every student can borrow in their own name that is not based on credit. there are two different portions, subsidized and unsubsidized. The government will pay the interest that accrues while the student is in school on the subsidized portion while the student is responsible for any interest that accrues on the unsubsidized portion. once you accept your financial aid offer the financial aid office will notify you of next steps for this loan
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