Federal Direct Loans (Subsidized & Unsubsidized)
Overview
Eligibility
Interest Rates
Limits
How to Apply
Loan Entrance Counseling and Loan Agreement (MPN)
Overview
Direct Subsidized Loan
Need-Based: The Federal Direct Subsidized Loan is based on financial need, as determined by the results of your FAFSA. The loan is considered "subsidized" because the government pays the interest for you while you are enrolled in school at least half-time (6 credit hours for undergraduates each semester) and during periods of authorized deferment. This loan disburses in two equal amounts (once during the fall semester and once during the spring semester).
Direct Unsubsidized Loan
Not Based on Financial Need: The Federal Direct Unsubsidized Loan is not based on financial need, and the government does not subsidize this loan. As a result, you are responsible for all interest that accrues during school, grace periods, and deferment periods. You may choose to make interest payments while in school or capitalize the interest (add it to your loan principal) until repayment. This loan disburses in two equal amounts (once during the fall semester and once during the spring semester).
Eligibility
- You must be a degree-seeking student who is admitted with full-standing to a degree-bound program at 红领巾瓜报.
- You must be enrolled at least half-time (6 credit hours as an undergraduate student or 5 credit hours as a graduate student).
- You must be a U.S. citizen, permanent resident of the U.S., or permanent resident of an eligible trust territory.
- You must not be in default on any student loans and must not owe a refund on any Title IV Program, such as a Pell Grant, FSEOG, Federal Perkins Loan, Federal Work Study, Federal Subsidized Direct Loan, Federal Unsubsidized Direct Loan, Federal PLUS Loan or Consolidation Loan.
- You must be maintaining Financial Aid Satisfactory Academic Progress toward your degree.
Interest Rates
Interest rates are set by federal regulation, effective as of July 1 of the academic year. Current fixed interest rates are:
| Type of Loan | Interest Rate* | Origination Fee* | Interest Type | Accrues Interest During School/Grace Period |
|---|---|---|---|---|
| Direct Subsidized Loan |
After 07/01/2024: 6.53% |
Before 10/01/2025: |
Fixed | No** |
| Direct Unsubsidized Loan (Undergraduate Students) |
After 07/01/2024: 6.53% |
Before 10/01/2025: 1.057% |
Fixed | Yes |
| Direct Unsubsidized Loan (Graduate Students) |
After 07/01/2024: 8.08% |
Before 10/01/2025: 1.057% |
Fixed | Yes |
*Due to the Sequestration of Federal Student Aid Programs, interest rate and origination fees may be subject to change.
Limits for Direct Subsidized & Unsubsidized Loans
The federal government sets both annual and aggregate (total) limits on the amount of Federal Direct Subsidized/Unsubsidized Loans that you may borrow. Your eligibility may be less than the federal loan limits. Federal guidelines require that all financial assistance, including loan funds, cannot exceed the cost of attendance.
Undergraduate Students
Dependent students may not borrow more than $31,000 (unless a parent has been denied a Parent PLUS Loan) while earning their undergraduate degree(s). Independent students and dependent students whose parent has been denied a Parent PLUS Loan may not borrow more than $57,500. The annual amounts, according to grade level, are listed in the tables below.
| Grade Level | Base Amount (maximum that may be subsidized) | Additional Unsubsidized | Total |
|---|---|---|---|
| Freshman (0-29 credit hours) |
$3,500 | $2,000 | $5,500 |
| Sophomore (30-59 credit hours) |
$4,500 | $2,000 | $6,500 |
| Junior (60-89 credit hours) |
$5,500 | $2,000 | $7,500 |
| Senior (and beyond) (90+ credit hours) |
$5,500 | $2,000 | $7,500 |
| Maximum Aggregate Limit for Dependent Students | $23,000 | $8,000 | $31,000 |
| Grade Level | Base Amount (maximum that may be subsidized) | Additional Unsubsidized | Total |
|---|---|---|---|
| Freshman (0-29 credit hours) |
$3,500 | $6,000 | $9,500 |
| Sophomore (30-59 credit hours) |
$4,500 | $6,000 | $10,500 |
| Junior (60-89 credit hours) |
$5,500 | $6,000 | $12,500 |
| Senior (and beyond) (90+ credit hours) |
$5,500 | $6,000 | $12,500 |
| Maximum Aggregate Limit for Independent Students | $23,000 | $34,500 | $57,500 |
Graduate Students
Graduate students may not borrow more than $138,500 while earning their graduate degree(s). Graduate students may consider the credit-based Federal Direct Graduate PLUS Loan if they need additional loan funds.
| Grade Level | Unsubsidized Loan |
|---|---|
| Each Year of Graduate School | $20,500 |
| Maximum Aggregate Limit for Graduate Students | $138,500 |
How to Apply
- File a FAFSA online at . Once your file is complete, the Office of Financial Aid will send you a financial aid offer.
- To accept your student loans, log in to and select the myFinances Tab, then Financial Aid Awards link. You should borrow only what you need.
- If you are accepting subsidized and/or unsubsidized student loans for the first time, complete your Master Promissory Note (MPN) for Direct Subsidized/Unsubsidized Loans and Loan Entrance Counseling at .
Loan Entrance Counseling & Master Promissory Note (MPN) for Direct Subsidized/Unsubsidized Loans
After you accept a Federal Direct Subsidized or Unsubsidized Loan as part of your financial aid, our office will continue the loan process by submitting the accepted Federal Direct Loan information to the Federal Common Origination and Disbursement (COD) system for origination.
However, for first-time borrowers, an entrance counseling session is required and a valid Master Promissory Note (MPN) for Direct Subsidized/Unsubsidized Loans must also be on file with the COD before our office can make any Federal Direct Loan disbursements to students.
After you have successfully completed your entrance counseling session and MPN, any future Federal Direct Loan offers that you accept will be linked to your original, completed MPN. This MPN is valid for up to 10 years from the date the first loan disbursement was made.