Federal Direct Loans

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Loans

Federal Direct Loans (Subsidized/Unsubsidized)

Federal student loans are available to eligible students (U.S. citizens, permanent residents, and eligible non-citizens) who submit a (FAFSA). These loans are available to qualifying full-time or part-time (6 credits) undergraduate and graduate students (Unsubsidized only) who are making Satisfactory Academic Progress (SAP) and are accepted into a degree-granting program (some graduate certificates are eligible too). Federal Direct Loans offer better options than private loans from banks. We encourage students to use federal loans before other private loans, which can carry costly fees and higher interest rates. See the loan .

Learn more about the ±ô´Ç²¹²Ô²õ.Ìý

Federal Direct Subsidized LoanÌý

These areÌýneed-basedÌýlow-interest loans from the U.S. Department of Education, administered by Â鶹³ÉÈË°æ. Borrowers must demonstrate financial need after all other awards (grants,Ìýscholarships, andÌýfederal work-study) are considered. Because these are need-based loans (based on FAFSA), the government pays the while the student is enrolled at least half-time (6 credits). You must pay the principal and interest during the repayment period which occurs six months following graduation, or if you are enrolled less than half-time (<6 credits) or withdraw from the university. The federal government withholds an to defray the costs of administering the loan programs.

Federal Direct Unsubsidized LoanÌý

These areÌýnon-need-based, low-interest loans from the U.S. Department of Education, administered by Â鶹³ÉÈË°æ. Both undergraduate and graduate students may be eligible but must be enrolled at least half-time (6 credits). Payment is deferred as long as the student is enrolled at least half-time; after deferment, there is a six-month grace period. The borrower is responsible for the on these loans from the time the loan is disbursed. Students may choose to make loan payments while in school (recommended) or allow the interest to accumulate. The federal government withholds an to defray the costs of administering the loan programs.

Required Loan Documents

First-time borrowers must complete the following documents:

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As a Federal Direct Loan borrower, before you graduate, or if you drop below less than half-time enrollment, you must complete:

  • discusses topics such as repayment options, grace periods, deferment, and more.

How Loan Amounts are Determined

The amount of federal loans offered is based on the following factors (see the chart below for details):

  • Undergraduate or graduate student
  • Grade level (freshman, sophomore, junior/senior)
  • Dependency status
  • Previous federal loan balances

Annual and Aggregate Federal Direct Loan Limits (Subsidized and Unsubsidized)

Year Dependent Students (except students whose parents are unable to obtain PLUS Loans)Ìý Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans)Ìý
First-YearÌý
Undergraduate Annual loan LimitÌý		 $5,500 – No more than $3,500 of this amount may be in subsidized ±ô´Ç²¹²Ô²õ.Ìý $9,500 – No more thanÌý
$3,500 of this amount may be in subsidized ±ô´Ç²¹²Ô²õ.Ìý
Second-Year Undergraduate Annual loan LimitÌý $6,500 – No more than $4,500 of this amount may be in subsidized ±ô´Ç²¹²Ô²õ.Ìý $10,500 – No more thanÌý
$4,500 of this amount may be in subsidized ±ô´Ç²¹²Ô²õ.Ìý
Third-Year and Beyond Undergraduate Annual loan LimitÌý $7,500 – No more than $5,500 of this amount may be in subsidized ±ô´Ç²¹²Ô²õ.Ìý $12,500 – No more than $5,500 of this amount may be in subsidized ±ô´Ç²¹²Ô²õ.Ìý
Graduate or Professional Students Annual Loan LimitÌý Not Applicable (all graduate and professional students are considered independent)Ìý $20,500 (unsubsidized only)Ìý
Subsidized and Unsubsidized Aggregate Loan limitÌý $31,000 – No more than $23,000 of this amount may be in subsidized ±ô´Ç²¹²Ô²õ.Ìý $57,500 for undergraduates – No more than $23,000 of this amount may be in subsidized ±ô´Ç²¹²Ô²õ.Ìý
$138,500 for graduate or professional students – No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.Ìý

Public Service Loan Forgiveness

A new program established by the College Cost Reduction & Access Act offering loan forgiveness after 10-years of public service employment.

To qualify for loan forgiveness, a borrower must make qualifying monthly loan payments (120 payments) while working full-time in qualifying public service employment. For further information, view theÌýPublic Service Loan ForgivenessÌýdocument.

Next Steps for Graduating Students

For important information and resources for graduating students, please visit here.