Federal Direct Subsidized & Unsubsidized Loans
Federal Direct Loans are for undergraduate and graduate* students who are U.S. citizens or permanent residents.
Differences between Subsidized and Unsubsidized Loans
*Important Change for Graduate Students - Effective for enrollment which begins after July 1, 2012, graduate students will no longer qualify for subsidized loans. They will only be eligible for Federal Direct Unsubsidized Loans and Grad PLUS loans.
Repayment begins six (6) months after the student is no longer enrolled at least half time.
One percent (1%) is deducted from the loan amount prior to disbursement.
Annual Borrowing Limits
(Combined Federal Direct Subsidized and Unsubsidized Loan Limits):
|Grade Level||Dependent Student||Independent Student|
|Freshman||$5,500 ($3,500 sub max)||$9,500 ($3,500 sub max)|
|Sophomores||$6,500 ($4,500 sub max)||$10,500 ($4,500 sub max)|
|Junior/Seniors||$7,500 ($5,500 sub max)||$12,500 ($5,500 sub max)|
|Undergraduate Dependent Students||$31,000 ($23,000 sub max)|
|Undergraduate Independent Students||$57,500 ($23,000 sub max)|
First Time Borrower RequirementsA Master Promissory Note (MPN) must be completed. The MPN defines the conditions under which you are borrowing and the terms under which you agree to pay back the loan. The MPN is generally required one time only (it is good for 10 years).
Direct Loan Entrance Counseling must be completed before loan funds are paid. The purpose of the counseling is to ensure you fully understand your rights and obligations as a borrower.