Direct Subsidized & Unsubsidized Loans

Federal Direct Subsidized and Unsubsidized Loans are low interest loans that undergraduate and graduate students may borrow from the federal government. To be eligible, students must be a U.S. citizen or permanent resident, not have previous defaults on a federal student loan, be enrolled at least half time, and be maintaining satisfactory academic progress. Loans must be repaid.

Direct Subsidized Loan

The Direct Subsidized Loan is offered to undergraduate students with demonstrated financial need. The federal government pays the interest while the student is in school. An origination fee will be charged by the federal government of the total amount of the loan. For the most current interest rates and origination fees, please visit https://studentaid.gov/.

Direct Unsubsidized Loan

The Direct Unsubsidized Loan is offered to students without demonstrated need. The student borrower pays the interest while in school and during the grace period. Undergraduate students may receive a combination of both Subsidized and Unsubsidized loans depending on their eligibility of need versus no-need and their dependency status. An origination fee is charged by the federal government on the total amount of the loan. For the most current interest rates and origination fees, please visit https://studentaid.gov/.

Federal Direct Loan Limits

Dependent Undergraduates:


Grade Level	Maximum Amount Per Year
Freshman	$5,500 (not to exceed $3,500 in Direct Subsidized Loans)
Sophomore	$6,500 (not to exceed $4,500 in Direct Subsidized Loans)
Junior & Senior	$7,500 (not to exceed $5,500 in Direct Subsidized Loans)
The maximum that dependent undergraduates may borrow for ALL YEARS is $31,000 (not to exceed $23,000 in Direct Subsidized Loans).

Independent Undergraduates:

Grade Level	Maximum Amount Per Year
Freshman	$9,500 (not to exceed $3,500 in Direct Subsidized Loans)
Sophomore	$10,500 (not to exceed $4,500 in Direct Subsidized Loans)
Junior & Senior	$12,500 (not to exceed $5,500 in Direct Subsidized Loans)
The maximum that independent undergraduates may borrow for ALL YEARS is $57,500 (not to exceed $23,000 in Direct Subsidized Loans).

Graduate Students:

• Graduate Students may borrow up to $20,500 per year.
(Direct Unsubsidized Loans only)

• The maximum that all graduate students may borrow is $138,500.

Direct Subsidized & Unsubsidized Loans: Frequently Asked Questions

▼ How many hours must I take to be eligible for student loan funds?

You must enroll at least half-time to receive student loan funds. As an undergraduate student, half-time is 6 hours. For a graduate student, half-time is 3 hours. The classes you take must be required for your declared program and major.

▼ Are there any fees charged on a student loan?

Yes. Direct Loans charges origination fees. Please refer to https://studentaid.gov/ for the most current origination fees.

▼ Where can I get more general information about the Federal Family Educational Loans (FFELP)?

Visit https://studentaid.gov/ for more information regarding loan programs