Federal Direct Loan Eligibility
To receive a Federal Direct Loan, you are required to:
- be enrolled at least half time
- meet institutional satisfactory academic progress standards
- complete the financial aid process
- complete an entrance loan counseling session and complete the loan agreement for subsidized/unsubsidized loan (MPN) at studentaid.gov
- request loan eligibility for Fall 2025 term by December 13, Spring 2026 term by May 3 and Summer 2026 term by July 27
There are two types of Federal Direct Loans: subsidized and unsubsidized.
Subsidized Loans
Subsidized loans are available to undergraduate students who demonstrate financial need remaining after all scholarships, grants, work study, tuition waivers and applicable resources. If your need has been met with other types of assistance, you will not receive a subsidized loan. If you do qualify, the U.S. Department of Education will pay the interest on your loan while you are enrolled in college at least half time. Loan recipients may also apply for periods of deferment after leaving school if hardships or low income prevent repayment.
Unsubsidized Loans
The Federal Direct Loan program also makes available, to both undergraduate and graduate students, an unsubsidized loan that is non-need based and accrues interest while the student is attending college. It is recommended that students pay the interest while in school rather than let the interest accrue (and eventually capitalize) until they begin making payments. Letting interest accrue will increase the total amount that must be repaid.
Maximums for Federal Direct Loans
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| Year based on earned credits | Dependent Undergraduate Student | Independent Undergraduate Student | Graduate Student | |
|---|---|---|---|---|
| Freshman (0-29) | $5,500 ($3,500 max sub) | $9,500 ($3,500 max sub) | $20,500 | |
| Sophomore (30-59) | $6,500 ($4,500 max sub) | $10,500 ($4,500 max sub) | $20,500 | |
| Junior and Senior (60+) | $7,500 ($5,500 max sub) | $12,500 ($5,500 max sub) | $20,500 | |
| Aggregate Limit | $31,000 ($23,000 max sub) | $57,500 ($23,000 max sub) | $138,500 |
Interest Rates
All Federal Direct Subsidized and Unsubsidized Loans for the 2022-2023 award year will have a 4.99% interest rate fixed for the life of the loan with a 1.057% up-front loan fee deducted from each disbursement.
Federal Direct Unsubsidized Loans for Graduate students for the 2022-2023 award year will have a 6.54% interest rate fixed for the life of the loan with a 1.057% up-front loan fee deducted from each disbursement. Interest rates on future year Federal Direct Loans will be indexed to the 10-year U.S. Treasury Note rate. Review the current Federal Direct Loan interest rate table below. The total of all financial aid, including loans, cannot exceed the standard budget of the institution. Students are limited to the federal maximums for each grade level.
Loan Repayment
Borrowing student loans to help fund your higher education expenses is an investment in your future that must be repaid. Failing to repay your student loans can have serious financial consequences; however, repaying your student loans with on-time monthly payments can help establish a positive credit history.
To access your Federal student loan information at any time during your college education, visit studentaid.gov and log in with your FSA ID. You may also access this information prior to repayment and any time after your Federal loans have been disbursed to have access to your loan servicer’s contact information and view a listing of all your Federal student loans. If you have private or state student loans, you may also want to obtain a free credit report that will provide an entire student loan history at AnnualCreditReport.com.
The repayment period begins 6 months after a student graduates, leaves school or drops to less-than-half time. If accrued interest is not paid, the interest will be capitalized (added to the loan principal balance) at the time repayment begins. A Direct Student Loan can be repaid using the standard, extended, graduated, pay as you earn, revised pay as you earn, income-based and income-contingent repayment plans. Students will work with their loan servicer regarding repayment. If there are any difficulties making payments, students should contact their servicer immediately to receive assistance. Servicers can help borrowers change their repayment plans or utilize deferment or forbearance options.
A Loan Repayment Estimator will help you to determine how much interest you will pay and the estimated amount of your monthly payments based upon your total loan indebtedness. Depending upon the type of loans you have borrowed, you may have choices to make concerning the best repayment plan for you. You may also elect to consolidate multiple Federal loans into one new consolidated loan to reduce your monthly payments. For the most comprehensive source of information concerning repayment plans, consolidation, deferment or forbearance, forgiveness, cancellation and discharge of your Federal student loans, see the “How to Repay Your Loans” section of the Federal Student Aid website.
Exit Loan Counseling
Students must complete exit loan counseling if they drop below half-time enrollment or graduate. The exit counseling can be completed online at studentaid.gov. The session will provide important information regarding repayment, deferment, loan cancellation and the consequences of student loan default. Please contact the Financial Aid Office if you have questions in regards to exit loan counseling.