… federal student loan. Loans are serious legal obligations. They must be repaid. You are obligated to repay the principal plus interest. We urge all first-time borrowers to spend time learning about the loan process and their responsibilities so … based on a family’s demonstrated need. The U.S. Department of Education is the lender under this program. The government does not pay the interest on behalf of borrowers under the Unsubsidized Direct Loan Program. The student borrower can choose … your award will be held in reserve for up to three years until you transfer to a bachelor’s degree program. Cal Grant B Provides subsistence payments for new recipients in the amount of $1,648 for a full-time, full year award. Payments are …