Federal Direct Loans

Eligibility for a subsidized Federal Direct Loan is based on financial need as determined by the Office of Student Financial Aid using information from the FAFSA. Subsidized loans are interest free during the student’s period of enrollment. Students have a six-month grace period after leaving school or dropping below half-time status before repayment begins, but interest will accrue during this period. Unsubsidized Direct Loans, which do not require financial need, have an interest charge during the in-school and grace periods.

Effective July 1, 2015, both subsidized and unsubsidized loans for undergraduate students have a fixed interest rate of 4.29 percent. Both loans also have a 1.073 percent origination fee. In addition, as of July 1, 2012, subsidized loans are limited to undergraduate students.

Annual loan limits are as follows:

$5,500 for freshmen, but only $3,500 can be subsidized

$6,500 for sophomores, but only $4,500 can be subsidized

$7,500 for upper-class undergraduates, but only $5,500 can be subsidized

$20,500 for graduate students

Financially independent undergraduate students may apply for an additional unsubsidized loan of $4,000 in the freshman and sophomore years and $5,000 in the junior and senior years.

Aggregate loan limits are as follows:

$31,000 for undergraduate dependent students, but no more than $23,000 can be subsidized

$57,500 for undergraduate independent students, but no more than $23,000 can be subsidized

$138,500 for graduate students