FEDERAL DIRECT LOANS
The federal Direct Loan is a low-interest student loan with flexible repayment options. The student must be enrolled at least half-time (6 hours of enrollment per semester) in a degree-seeking program. The loan is borrowed from and insured by the Department of Education.
Two Types of Federal Direct Student Loans
Subsidized loans are offered to students who are eligible for need-based financial assistance. No interest is charged on these loans until you graduate, withdraw, or are enrolled less than half-time. Interest accrues following a six-month grace period.
Unsubsidized loans are available to those who do not qualify for need-based financial assistance. Unlike subsidized loans, interest accrues on these loans while students are still in school. You have the option to pay the interest as you attend school or to wait for the repayment period to begin.
How to Apply
There are four required steps to apply for a Federal Direct Loan.
Federal School Code: 003432
| YEAR: | DEPENDENT STUDENTS: | INDEPENDENT STUDENTS (or Dependent undergraduate students whose parents are denied PLUS loan) |
|---|---|---|
| First-Year Undergraduate | $5,500-No more than $3,500 of this amount may be in subsidized loans. | $9,500-No more than $3,500 of this amount may be in subsidized loans. |
| Second-Year Undergraduate | $6,500-No more than $4,500 of this amount may be in subsidized loans. | $10,500-No more than $4,500 of this amount may be in subsidized loans. |
| Third Year and Beyond Undergraduate | $7,500 per year-No more than $5,500 of this amount may be in subsidized loans. | $12,500-No more than $5,500 of this amount may be in subsidized loans. |
| Graduate | N/A All graduate and professional students are considered independent | $20,500 (unsubsidized only). |
| STUDENT TYPE: | SUBSIDIZED: | UNSUBSIDIZED: | COMBINED: |
|---|---|---|---|
| Undergraduate (Dependent) | $23,000 | $8,000 | $31,000 |
| Undergraduate (Independent or Dependent with PLUS Loan Denial) | $23,000 | $34,500 | $57,500 |
| Graduate | $65,500 | $73,000 | $138,500 |
| LOAN TYPE: | DISBURSAL DATE: | INTEREST RATE: |
|---|---|---|
| Direct Subsidized Loans and Direct Unsubsidized Loans for Undergraduate Students | After July 1, 2019 and before July 1, 2020 After July 1, 2020 and before July 1, 2021 | 4.53% 2.75% |
| Direct Unsubsidized Loans for Graduate and Professional Students | After July 1, 2019 and before July 1, 2020 After July 1, 2020 and before July 1, 2022 | 6.08% 4.30% |
| Direct PLUS Loans for Parents of Dependent Undergraduate Students and for Graduate or Professional Students | After July 1, 2019 and before July 1, 2020 After July 1, 2020 and before July 1, 2023 | 7.08% 5.30% |
| LOAN TYPE: | DISBURSAL DATE: | LOAN FEE PERCENT: |
|---|---|---|
| Direct PLUS Loans (Parent and Graduate or Professional Students) | On or after October 1, 2019 and before October 1, 2020 On or after October 1, 2020 and before October 1, 2021 | 4.236% 4.228% |
| Direct Subsidized Loans and Direct Unsubsidized Loans | On or after October 1, 2019 and before October 1, 2020 On or after October 1, 2020 and before October 1, 2022 | 1.059% 1.057% |