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Subsidized and Unsubsidized Direct Loans
Subsidized and Unsubsidized Direct Loans

» Subsidized and Unsubsidized Direct Loans

The Subsidized and Unsubsidized Direct Loans are offered to students to help pay for their education. These loans are not dependent upon a credit check and require no previous borrowing. These loans have a set period of time after you graduate, leave school, or drop below half-time enrollment before a student must begin repayment. This period is called a “grace period”.

Subsidized Direct Loan

  • Need-based
  • Must be enrolled at least half-time
  • No interest accruing while in school
  • Payments automatically deferred while enrolled at least half-time
  • 5.50% interest rate for loans first disbursed between 7/1/2023 and 6/30/2024*
  • 6.53%  interest rate for loans first disbursed between 7/1/2024 and 6/30/2025*
  • 1.057% origination fee for loans first disbursed between 10/1/2020 and 9/30/2024*

Unsubsidized Direct Loan

  • Non-need-based
  • Must be enrolled at least half-time
  • Interest accrues while in school
  • Payments automatically deferred while enrolled at least half-time
  • 5.50% interest rate for loans first disbursed between 7/1/2023 and 6/30/2024*
  • 6.53%  interest rate for loans first disbursed between 7/1/2024 and 6/30/2025*
  • 1.057% origination fee for loans first disbursed between 10/1/2020 and 9/30/2024*

*Subject to change.

Annual Loan Limits

 

Dependent

Independent

Freshman

$5,500 ($3,500 in subsidized)

$9,500 ($3,500 in subsidized)

Sophomore

$6,500 ($4,500 in subsidized)

$10,500 ($4,500 in subsidized)

Junior/Senior/Credential

$7,500 ($5,500 in subsidized)

$12,500 ($5,500 in subsidized)

If a dependent student's parent is denied a Direct Parent PLUS Loan due to adverse credit, that student will be eligible for the Independent Student loan limits.

Lifetime Aggregate Loan Limits

 

Subsidized Maximum

Combined Subsidized & Unsubsidized Maximum

Dependent Undergraduate and Credential

$23,000

$31,000

Independent Undergraduate and Credential

$23,000

$57,500

Including the amounts borrowed as an undergraduate or credential student


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How to Apply

  1. Accept your Subsidized/Unsubsidized Direct Loan(s)
    • Please log into the Student Center to accept your Subsidized/Unsubsidized loan(s).
  2. Log on to StudentAid.gov with your FSA ID Username and password and complete Federal Direct Loan Entrance Counseling.
  3. While logged on to StudentAid.gov, complete the Master Promissory Note (MPN) by selecting Complete Loan Agreement (Master Promissory Note) from the main page and complete the MPN for Subsidized/Unsubsidized Loans.