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.