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Federal Direct Loan Program
The Federal Direct Loan Program offers low interest rate loans (subsidized or unsubsidized), directly from the Department of Education, to undergraduate and graduate/professional students. Eligibility is determined using information provided in the Free Application for Federal Student Aid (FAFSA) and not on the basis of credit or debt to income ratio.
Borrower
Student
Loan Eligibility
Students enrolled at least half-time in an eligible program of study, who:
- Have completed the Free Application for Federal Student Aid (FAFSA)
- Are U.S. citizens or eligible non-citizens
- Are not in default on any federal educational loans
- Have not already borrowed more than the aggregate federal direct loan limit for their program
- Meeting Satisfactory Academic Progress (SAP)
Types of Federal Direct Loans
Direct Subsidized Loan - This need-based loan program is referred to as "subsidized" because the student is not charged interest while they are enrolled in school at least half-time and during grace periods and deferment periods. Available to undergraduate students only.
Direct Unsubsidized loan - This non-need-based loan program is referred to as "unsubsidized" because interest accrues (accumulates) while the student in enrolled in school. Interest on Direct Unsubsidized Loans begins to accrue after disbursement of the loan funds; however, the student may choose to have the payment of the interest deferred during enrollment and later capitalized (added to principal) at the time of repayment.
How to Apply
- Complete the Free Application for Federal Student Aid (FAFSA)
- Submit all requested supporting documentation to the Office of Financial Aid
- Complete for the Federal Direct Loan (first-time borrowers only)
- Complete the (first-time borrowers only)
- View and accept Federal Direct Subsidized and/or Unsubsidized Loan offers on .
Borrowing Limits
Dependent Undergraduate Students
| Year | Subsidized | Unsubsidized* | Annual Total | Aggregate Subsidized |
Aggregate Total (Subsidized & Unsubsidized) |
| Freshman (0-30 credit hours) |
$3,500 | $2,000 | $5,500 | $23,000 | $31,000 |
| Sophomore (31-60 credit hours) |
$4,500 | $2,000 | $6,500 | ||
| Junior/Senior (61-120+ credit hours) |
$5,500 | $2,000 | $7,500 |
Independent Undergraduate Students
| Year | Subsidized | Unsubsidized | Annual Total | Aggregate Subsidized |
Aggregate Total (Subsidized & Unsubsidized) |
| Freshman (0-30 credit hours) |
$3,500 | $6,000 | $9,500 | $23,000 | $57,500 |
| Sophomore (31-60 credit hours) |
$4,500 | $6,000 | $10,500 | ||
| Junior/Senior (61-120+ credit hours) |
$5,500 | $7,000 | $12,500 |
Graduate Students
| Year | Subsidized | Unsubsidized | Annual Total | Aggregate Subsidized |
Aggregate Total** (Subsidized & Unsubsidized) |
| All | $0 | $20,500 | $20,500 | $0 | $138,500 |
*If a Federal Direct PLUS Loan for Parents is applied for and denied based on credit, a dependent undergraduate student may borrow at the independent undergraduate level.
**Aggregate total includes Federal Direct Loans borrowed as an undergraduate student.
Interest Rates
| Borrower | Loan | Fixed Interest Rate (Loans disbursed on or after July 1, 2024 and before July 1, 2025) |
| Undergraduate | Subsidized | 6.53% (upon entering repayment) |
| Undergraduate | Unsubsidized | 6.53% |
| Graduate/Professional | Unsubsidized | 8.08% |
Fees
1.057% for loans with a first disbursement on or after Oct. 1, 2021. Fees are scheduled to change each fall due to federal budget sequestration.
Repayment Information
Repayment begins six months after you graduate or drop below half-time enrollment and generally extends over a 10-year period. is required for any federal student loan borrower each time they graduate or drop below half-time enrollment. You can apply for temporary deferment of payments if you enroll in graduate school at least half-time, become unemployed, experience economic hardship, or meet other approved criteria. There are different , and you may choose one that best fits your circumstances. You may be able to estimate your monthly payment amounts using a .
NOTE: Information about your loans will be reported to the . Information in NSLDS is accessible to schools and loan servicers for specific purposes as authorized by the Department of Education.
Additional details regarding the Federal Direct Loan Program, including loan forgiveness, repayment options, and borrower defense to repayment, may be found at .
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