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Federal Direct Student Loan

Annual Loan Maximums

The amount you can borrow annually depends on your grade level, as determined by the number of units you have earned. 

Grade Level
Earned Units
Annual Loan Limit
Freshman 0-29 $2,625
Sophomore 30-59 $3,500
Junior 60-89 $5,500
Senior 90+ $5,500
Graduate Student   $8,500*

*Graduate student borrowers must take at least six units per semester of graduate level coursework towards their graduate degrees.

Cost of Borrowing

Beginning with loans for which the first disbursement of principal is made on or after July 1, 2006, Federal Direct loan borrowers will pay a 3 percent of each Direct loan to the U.S. Department of Education as a loan origination fee.  The U.S. Department of Education may offer an up-front interest rebate of up to 1.5 percent of the loan amount borrowed.  (To keep the interest rebate, you must make your first twelve required monthly payments on time.) This fee will reduce the amount of loan money disbursed to your university account.


After you graduate, leave school, or drop below half-time enrollment (six units), you have a six-month grace period before you begin repayment.

Repayment Options

You have four repayment options:

  1. The Standard Repayment Plan allows you to repay your loan with a fixed monthly payment of no less than $50 over a period of less than ten years.
  2. The Extended Repayment Plan also has minimum payments of $50 per month, but allows you to take from 12 to 30 years to repay your loans.
  3. The Graduated Repayment Plan allows your payments to start out at one level, then gradually increase every two years.
  4. The Income Contingent Repayment Plan gives you the flexibility to tie your payments to your Adjusted Gross Income.

You can estimate your monthly payments with various repayment plans by using the Repayment calculators available on-line at the U.S. Department of Education's Direct Loan Web site.  

Loan Consolidation

A Federal Direct Consolidation Loan allows you to simplify repaying all of your educational loans by combining loans from the Federal Direct Loan Program, the Stafford Loan Program*, and the Federal Perkins Loan Program.

*Towson University does not participate in the Stafford Loan Program.


 A deferment allows you to postpone payment on your loans.  Interest charges accrue on an unsubsidized loan during a deferment period.  You may be eligible for a deferment while you are involved in the following activities:

  1. pursuing at least half-time study at an eligible school;
  2. conscientiously seeking but unable to find full-time employment (for up to three years);
  3. experiencing economic hardship (for up to three years).


If you have a problem making a payment on your loan, the Direct Loan Servicing Center will work with you to help you avoid the costs and adverse consequences of delinquency. Forbearance is a temporary postponement or reduction of loan payments for a limited and specified period of time when you are willing but unable to make loan payments.  Forbearance may also be an extension of the repayment period.  All loans accrue interest during forbearance.

 To e-mail the Financial Aid Office,  please click here 





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