Federal Direct Loan Terms

Subsidized Loan

The Subsidized Direct Loan is offered to undergraduate students who demonstrate financial eligibility according to federal regulations. Interest accrues starting after the 6-month grace period and throughout the repayment period. The interest rate for Subsidized Loans with a first disbursement occurring after June 30, 2023 and prior to July 1 2024 is 5.50%, fixed for the life of the loan.

Unsubsidized Loan

The Unsubsidized Direct Loan is offered to students who do not qualify on the basis of calculated financial eligibility for a Subsidized Loan, or who qualify for only a portion of the Subsidized Loan annual limit. Interest is charged on an unsubsidized loan while the student is enrolled in school, beginning after the loan is fully disbursed. Students may elect to pay the interest or have it capitalized (added to the principal) and pay it during the repayment period. The interest rate for undergraduate Unsubsidized Loans with a first disbursement occurring after June 30, 2023 and prior to July 1, 2024 is 5.50%, fixed for the life of the loan.

Annual Loan Limits	First-Year	Sophomore	Junior	Senior
Subsidized Only	$3,500	$4,500	$5,500	$5,500
Subsidized & Unsubsidized Total	$5,500	$6,500	$7,500	$7,500

Visit the U.S. Department of Education website for current graduate student loan limits.

Additional Unsubsidized Loan

A dependent undergraduate with a parent who has been credit denied on a Federal PLUS Loan may be eligible to borrow additional (F-Yr/So: $4,000, Jr/Sr: $5,000) Unsubsidized Direct Loan. An independent undergraduate may be eligible to borrow additional (F-Yr/So: $4,000, Jr/Sr: $5,000) Unsubsidized Direct Loan, provided they meet the federal criteria as an independent applicant for federal student aid.

Origination Fee

An origination fee of 1.057 percent is set by the U.S. Department of Education and deducted from loans with first disbursement dates on or after October 1, 2020 and before October 1, 2024. This fee is deducted automatically from amounts borrowed. Thus the net amount disbursed is less than the loan amount approved.

Maximum Annual Loan

Maximum annual loan amounts are set by federal statute and apply to the total combined subsidized and unsubsidized loan.

Maximum Cumulative Loan

The maximum cumulative (aggregate) subsidized and unsubsidized loan amount is $31,000 (no more than $23,000 of which may be Subsidized) for undergraduate study.