Federal Direct Loans

Federal Loan Program

Federal Direct Loans are for undergraduate, graduate and professional degree students, enrolled at least half time, who meet the general requirements to receive federal aid. The William D. Ford Federal Direct Loan Program is the largest federal student loan program. Under this program, the U.S. Department of Education is your lender.

Federal Direct Subsidized Loan


Details

  • For undergraduate students who are enrolled at least half time and demonstrate financial need
  • Interest is 3.734% for loans made between 7/1/2021 and 7/1/2022
  • Student is not charged interest on the loan while in school and during deferment periods
  • The U.S. Department of Education (ED) is the lender; payment is owed to ED

Limit

  • Between $3,500 and $5,500 depending on year in school

Fees

  • 1.059% - On or after 10/1/2020 and before 10/1/2021
  • 1.057% - On or after 10/1/2021 and before 10/1/2022 

Federal Direct Unsubsidized Loan


Details

  • For undergraduate and graduate students who are enrolled at least half time
  • Interest is 3.734% for undergraduate and 5.284% for graduate loans made between 7/1/2021 and 7/1/2022
  • Student is responsible for interest during all periods
  • The U.S. Department of Education (ED) is the lender; payment is owed to ED

Limit

  • Between $5,500 to $20,500 (minus any subsidized amount received for the same period) depending on year in school and dependency status

Fees

  • 1.059% - On or after 10/1/2020 and before 10/1/2021
  • 1.057% - On or after 10/1/2021 and before 10/1/2022

Federal Direct PLUS Loan for Parents 


Details

  • For parents of dependent students
  • Dependent students must be enrolled at least half time
  • Interest is 6.284% for loans made between 7/1/2021 and 7/1/2022
  • Parent must not have negative credit history
  • Parent is responsible for interest during all periods
  • The U.S. Department of Education (ED) is the lender; payment is owed to ED

Limit

  • Maximum amount is cost of attendance* minus any other financial aid the student receives

Fees

  • 4.236% - On or after 10/1/2020 and before 10/1/2021
  • 4.228% - On or after 10/1/2021 and before 10/1/2022

Federal Direct PLUS Loan for Graduate or Professional Students


Details

  • For graduate or professional degree students who are enrolled at least half time

  • If the student has not requested the annual maximum Unsubsidized Stafford Loan amount they are eligible for, the school must notify the student of this eligibility and give them the opportunity to request it
  • Student must not have negative credit history
  • Interest is 6.284% for loans made between 7/1/2021 and 7/1/2022
  • Student is responsible for interest during all periods
  • The U.S. Department of Education (ED) is the lender; payment is owed to ED

Limit

  • Maximum amount is cost of attendance* minus any other financial aid the student receives

Fees

  • 4.236% - On or after 10/1/2020 and before 10/1/2021
  • 4.228% - On or after 10/1/2021 and before 10/1/2022
  • Federal Direct Subsidized Loan

    Federal Direct Subsidized Loan


    Details

    • For undergraduate students who are enrolled at least half time and demonstrate financial need
    • Interest is 3.734% for loans made between 7/1/2021 and 7/1/2022
    • Student is not charged interest on the loan while in school and during deferment periods
    • The U.S. Department of Education (ED) is the lender; payment is owed to ED

    Limit

    • Between $3,500 and $5,500 depending on year in school

    Fees

    • 1.059% - On or after 10/1/2020 and before 10/1/2021
    • 1.057% - On or after 10/1/2021 and before 10/1/2022 
  • Federal Direct Unsubsidized Loan

    Federal Direct Unsubsidized Loan


    Details

    • For undergraduate and graduate students who are enrolled at least half time
    • Interest is 3.734% for undergraduate and 5.284% for graduate loans made between 7/1/2021 and 7/1/2022
    • Student is responsible for interest during all periods
    • The U.S. Department of Education (ED) is the lender; payment is owed to ED

    Limit

    • Between $5,500 to $20,500 (minus any subsidized amount received for the same period) depending on year in school and dependency status

    Fees

    • 1.059% - On or after 10/1/2020 and before 10/1/2021
    • 1.057% - On or after 10/1/2021 and before 10/1/2022
  • Federal Direct PLUS Loan for Parents 

    Federal Direct PLUS Loan for Parents 


    Details

    • For parents of dependent students
    • Dependent students must be enrolled at least half time
    • Interest is 6.284% for loans made between 7/1/2021 and 7/1/2022
    • Parent must not have negative credit history
    • Parent is responsible for interest during all periods
    • The U.S. Department of Education (ED) is the lender; payment is owed to ED

    Limit

    • Maximum amount is cost of attendance* minus any other financial aid the student receives

    Fees

    • 4.236% - On or after 10/1/2020 and before 10/1/2021
    • 4.228% - On or after 10/1/2021 and before 10/1/2022
  • Federal Direct PLUS Loan for Graduate or Professional Students

    Federal Direct PLUS Loan for Graduate or Professional Students


    Details

    • For graduate or professional degree students who are enrolled at least half time

    • If the student has not requested the annual maximum Unsubsidized Stafford Loan amount they are eligible for, the school must notify the student of this eligibility and give them the opportunity to request it
    • Student must not have negative credit history
    • Interest is 6.284% for loans made between 7/1/2021 and 7/1/2022
    • Student is responsible for interest during all periods
    • The U.S. Department of Education (ED) is the lender; payment is owed to ED

    Limit

    • Maximum amount is cost of attendance* minus any other financial aid the student receives

    Fees

    • 4.236% - On or after 10/1/2020 and before 10/1/2021
    • 4.228% - On or after 10/1/2021 and before 10/1/2022

The annual maximum amount may be awarded to you as a combination of subsidized and unsubsidized. You must pay the interest on the portion that is unsubsidized while in school, and during any grace or in-school deferment periods, unless you elect to have the interest added to the principal. This is called capitalization. Having the interest capitalized will mean larger payments when you begin repayment.   

Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You're responsible for repaying the entire amount you borrowed and not just the amount you received.