Direct Loans for Undergraduates
Federal Direct Loan Programs – Undergraduate Students
The Federal Direct Loan Program provides fixed low-interest loans to eligible undergraduate student borrowers.
Subsidized Direct Loans are need-based. The federal government pays the interest while the student is enrolled at least half-time.
Unsubsidized Direct Loans are not need-based. The student is responsible for paying the interest that accrues during in-school, grace, and deferment periods.
Eligibility Restrictions: Students are not eligible for federal student loans if they have a Total and Permanent Disability (TPD) discharge that has not been cleared for new borrowing, are in default on a federal student loan, or are in overpayment status on a federal grant or loan.
Interest Rates for Loans First Disbursed On or After July 1, 2024, and Before July 1, 2025:
Origination Fee for Loans First Disbursed On or After October 1, 2024, and Before October 1, 2025:
Annual Loan Limits for Dependent Undergraduate Students:
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Freshman: $3,500 Subsidized + $2,000 Unsubsidized
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Sophomore: $4,500 Subsidized + $2,000 Unsubsidized
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Junior/Senior: $5,500 Subsidized + $2,000 Unsubsidized
Annual Loan Limits for Independent Undergraduate Students:
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Freshman/Sophomore: $3,500 Subsidized + $6,000 Unsubsidized
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Junior/Senior: $5,500 Subsidized + $7,000 Unsubsidized
Actual loan amounts may be less, depending on the student’s Cost of Attendance, Expected Family Contribution, and other financial aid received.
Loan Disbursements
Loans are typically disbursed in two equal payments—one for the fall semester and one for the spring semester. Single-term loans are not approved unless the student is graduating in December, in which case the loan will be prorated based on the number of credits for that term.
Repayment
Repayment begins six months after the student graduates, withdraws, or drops below half-time enrollment. Students with Unsubsidized Direct Loans are responsible for interest that accrues during the six-month grace period.
Loan Deadlines
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Fall Semester: November 15
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Spring Semester: April 15
These deadlines allow adequate time to process applications, complete promissory notes, and receive funds. Loans will not be processed for prior semesters or to cover past-due balances from previous terms. Students with a fall semester balance over $3,000 may not enroll for spring.
Master Promissory Note (MPN)
First-time Direct Loan borrowers (including transfer students) must complete and sign an MPN. Loans will be canceled if MPN requirements are not met within 30 days.
Entrance Loan Counseling
Required for all first-time borrowers before loan funds can be disbursed. May be completed online at studentaid.gov or in the Financial Aid Office.
Exit Loan Counseling
Required when a borrower graduates, withdraws, or drops below half-time (6 credits). May be completed online at studentaid.gov or in the Financial Aid Office.