Federal Direct Student Loans are long-term, low interest loans from the U.S. Department of Education. They are the largest federal aid program and the programs you are most likely to find in your aid offer. There are two types of Federal Direct Student Loans: Subsidized and Unsubsidized. The primary differences are their financial need requirements and the point at which interest begins to accrue, and graduate students are not eligible to borrow Subsidized Loans.
Your aid offers may include a combination of Subsidized and Unsubsidized loans. For example, a freshman with a Subsidized loan of $500 may also receive an offer of an Unsubsidized loan for $5,000 to meet the annual combined Subsidized and Unsubsidized freshman limit.
To apply for these loans, you must repeat all of these steps every academic year.
The maximum amount you can borrow per year depend on your FAFSA Dependency Status, and your grade level as determined by your earned course units.
Subsidized loans require financial need. Students without sufficient financial need can still borrow the same “Maximum Total Direct Loans,” but more or all of their loans will be Unsubsidized. Graduate students are only eligible for Unsubsidized Direct Loans.
|Grade Level-Units earned||Maximum Subsidized Portion||Additional Unsubsidized Portion||maximum total Direct Loans|
|Grade Level-Units earned||Maximum Subsidized Portion||Additional Unsubsidized Portion||Total Direct Loans|
|Students||Maximum Subsidized Portion||Additional Unsubsidized Portion||Total Direct Loans|
*The aggregate graduate limit includes all undergraduate and graduate loans.
Loan financing costs include the interest that accrues during the life of the loan and a Loan Disbursement Fee that is deducted from each loan disbursement before it is credited to your university account.
The following disbursement fees will be deducted from your semester loan disbursements for loans first disbursed from 10/1/19 to 9/30/20.
These interest rates apply to annual loans first disbursed from 7/1/20 to 6/30/21.
|LOAN TYPE||UNDERGRADUATE INTEREST RATE||GRADUATE INTEREST RATE|
|Direct Subsidized Loans||2.75%||N/A|
|Direct Unsubsidized Loans||2.75%||4.3%|
These interest rates apply to annual loans first disbursed from 7/1/19 to 6/30/20.
|loan type||Undergraduate INTEREST Rate||graduate INTEREST Rate|
|Direct Subsidized Loans||4.529%||N/A|
|Direct Unsubsidized Loans||4.529%||6.079%|
You must begin to repay your loan at the end of a 6-month grace period that begins when you graduate, leave school, or drop below half-time enrollment.
For additional information, visit these U.S. Department of Education web pages: