Federal Student Loans
Student loans are available to help with financing your educational expenses. Loans, of course, need to be paid back with interest. Each loan program has specific eligibility criteria, repayment, cancellation and deferment conditions.
Federal Direct Loan
The Federal Direct Loan Program is a federally sponsored and regulated national student loan program for undergraduate and graduate students. The Federal Direct Loan is offered to you by the Financial Aid Office after completing an annual Free Application for Federal Student Aid (FAFSA) application and can come in the form of a Subsidized or an Unsubsidized Loan (or a combination of both). Funds are borrowed directly from the federal government, and a federal loan origination fee (approximately 1%) is applied to each loan. Your loans will be assigned to a servicer, who will be your point of contact regarding repayment. You will receive a disclosure statement from your servicer regarding the amount of your loan and the anticipated disbursement dates. No payments are required until 6 months after you graduate or drop below half-time enrollment. The maximum repayment period is 10 years, although through consolidation, that period may be extended.
Subsidized Federal Direct Loan
Eligibility for the Subsidized Loan is based on financial need as determined by the FAFSA and the Financial Aid Office. The Subsidized Loan does not accrue interest until a student graduates or drops below half time enrollment. Direct Subsidized Loans that disburse between July 1, 2023 and June 30, 2024 have an interest rate of 5.50%. Graduate students are not eligible for this type of loan.
Unsubsidized Federal Direct Loan
Unlike the Subsidized Loan, financial need is not a requirement for the Unsubsidized Loan, and the interest on the Unsubsidized Loan begins to accrue immediately upon disbursement. Direct Unsubsidized Loans that disburse between July 1, 2023 and June 30, 2024 have an interest rate of 5.50% for Undergraduates (7.05% for Graduates). Students can pay the interest quarterly or allow the interest to add to the principal.
Federal Loan Limits (annual)
| Student Type | Dependent | Independent |
|---|---|---|
| Freshman | $5,500 (up to $3,500 Subsidized) | $9,500 (up to $3,500 Subsidized) |
| Sophomore | $6,500 (up to $4,500 Subsidized) | $10,500 (up to $4,500 Subsidized) |
| Junior | $7,500 (up to $5,500 Subsidized) | $12,500 (up to $5,500 Subsidized) |
| Senior | $7,500 (up to $5,500 Subsidized) | $12,500 (up to $5,500 Subsidized) |
| Graduate | $20,500 |
Federal Loan Limits (lifetime)
| Degree Type | Dependent | Independent |
|---|---|---|
| Undergraduate | $31,000 (up to $23,000 Subsidized) | $57,500 (up to $23,000 Subsidized) |
| Graduate | $138,500 |
First Time Borrow Requirements
First time borrowers of the Federal Direct Loan are required to complete two steps in order to secure the loan(s). Using your FSA username and password, log into the studentaid.gov site. You'll see two links:
- Complete Entrance Counseling
- Complete Master Promissory Note