Federal Direct Loan Information

Subsidized Loan

This federal education loan is available to students who demonstrate financial need. It is available to students accepted/enrolled on at least a half-time basis in an undergraduate program.   The advantage of a Direct Subsidized Loan is that interest does not accrue while the student is enrolled at least half-time.


Unsubsidized Loan

This federal education loan was established by the federal government for students who are not eligible or have limited eligibility for the Subsidized Direct Loan. It is available to students accepted/enrolled on at least a half-time basis in an undergraduate program.  Students may borrow under the same terms as the Subsidized Direct Loan program with one exception; the government does not pay the interest on an Unsubsidized Loan (note: see difference in interest rate below).  The student either pays all interest that accrues on this loan during the time of enrollment, grace period and repayment, or may capitalize the interest during the period of enrollment.



Annual Loan Amounts

The amount of Federal Direct Loan eligibility is based upon dependency status, grade level, and whether you are in an Undergraduate or Graduate program.  Subsidized eligibility for undergraduate students is based upon information provided on the FAFSA.



Grade Level Base Loan Amount Subsidized and Unsubsidized Loans Additional Unsubsidized LoanEligibility for Dependent Students Additional Unsubsidized Loan Eligibility for Independent Students. Dependent Students whose parent (s) are not eligible to borrow a Federal Direct Parent PLUS Loan also qualify
First-Year Undergraduate $3,500
$2,000 $4,000
Second-Year Undergraduate $4,500 $2,000 $4,000
Third-Year and Beyond Undergraduate
$5,500 $2,000 $5,000
Graduate Students

$20,500 in Unsubsidized Loan

(No Subsidized Loan eligibility as a Graduate Student)


Aggregate Loan Limits

If the total loan amount you receive over the course of your education reaches the aggregate loan limit, you are not eligible to receive additional loans. However, if you repay some of your loans to bring your outstanding loan debt below the aggregate loan limit, you could then borrow again, up to the amount of your remaining eligibility under the aggregate loan limit.

Students can view their loan borrowing history by logging into their account at https://studentaid.gov.



Dependent Students- Undergraduate Independent Students (and dependents undergraduate students whose parent(s) are not eligible to borrow the Federal Direct PLUS Loan)- Undergraduate Graduate Students


Of the $31,000, no more than $23,000 may be in Subsidized Loans


Of the $57,500, no more than $23,000 may be in Subsidized Loans


Of the $138,500, no more than $65,500 may be in Subsidized Loans

The $138,500 limit includes All Federal loans received for Undergraduate study.

Interest Rates

Interest rates on federal student loans are set by federal law.  The Department of Education will release the upcoming year's interest rate on July 1.   

To view how the interest is calculated on the loan, please visit: https://studentaid.gov/understand-aid/types/loans/interest-rates


2024-2025 Academic Year




Subsidized and Unsubsidized Loans



Unsubsidized Loan

Fixed Interest Rate 6.53%   8.08%


Origination Fees

Before the loan funds are sent to the school (disbursed), a percentage of the loan amount is kept as an origination fee.  Therefore the amount that school will receive is less than the amount borrowed, however you are responsible for repaying the entire amount borrowed and not just the amount received by the school.

Generally loans funds are disbursed twice a year: one-half for the Fall semseter and the other half for the Spring semester.  Therefore an origination fee would be assessed from the 2 disbursements. 

Example: Unsubsidized Loan for $2,000 is awarded for Fall and Spring; $990 will disburse for the Fall and another $990 for the Spring.



Undergraduate and Graduate

Federal Direct Subsidized and Unsubsidized Loans