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Federal Direct Loans (William D. Ford)

Direct Loans are low interest loans for students and parents to help pay for the cost of a student’s education.  There are two types of Direct Loans: Subsidized and Unsubsidized. To qualify you must be enrolled in the 480 Hour Combination Welder I Program Course or the 640 Hour Combination Welder II Program.  You must first complete the FAFSA (Free Application for Federal Student Aid) online to see if you qualify.  Repayment begins six months after graduation or date you cease to be a student.  LWT is eligible to award the Federal Pell Grant Program (640 Hour Combination Welder II Program only), Direct Subsidized, Unsubsidized, and Parent’s Plus for Undergraduate students which are administered by the Department of Education.

Subsidized loans are for students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time, during the grace period, and during deferment periods.


An unsubsidized loan is not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods.

An additional type of Direct Loan called Parents Plus is available to parents of a dependent student.  Plus Loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. A credit check will be done so a parent cannot have an adverse credit history. If your application is denied your student may be eligible to borrow an additional Unsubsidized Loan.