Federal Direct Stafford Loans (Subsidized & Unsubsidized)

Federal Loans are a major form of self-help aid for students. Loans offered through the federal government are referred to as Direct Loans because eligible students and parents borrow directly from the U.S Department of Education. Borrowers must meet basic federal aid eligibility requirements and students must be enrolled at least half-time. To be considered for a federal loan a student must have a FAFSA application on file. A loan must be repaid in full, including any interest and fees.

Important note: All loans must be originated prior to the end of the semester for which you would like to receive the loan. Refer to the academic calendar for the official end of semester dates.

Loan Limits

Interest Rates

Origination Fees

---

Federal Direct Subsidized Loans

Subsidized loans are need-based loans. Student must be enrolled in a degree program with six or more credits each semester to be eligible.

First time borrowers will be required to complete a Master Promissory Note and Entrance Counseling before loan funds can be disbursed.

While you are enrolled in at least 6 credits and during your 6 month grace period, the federal government pays the interest on subsidized loans.* Your loan grace period is defined as the 6 months immediately following your graduation or the date at which your enrollment dropped below 6 credits.

Repayment begins 6 months after you graduate or are no longer enrolled for 6 or more credits. Payments are made directly to your loan servicer. To locate your servicer log onto The National Student Loan Data System.

Federal Direct Unsubsidized Loans

Unsubsidized loans are non-need based loans and are available regardless of financial need. Students must be enrolled in a degree program with six or more credits to be eligible.

First time borrowers will be required to complete a Master Promissory Note and Entrance Counseling before loan funds can be disbursed.

The federal government does NOT pay the interest. Interest begins to accrue as soon as the loan funds are disbursed. Students may choose to pay the interest that accumulates or have it capitalized – meaning, the interest will be added to the principal amount of your loan and additional interest will be based upon the higher amount. Paying the interest as it accumulates will reduce the amount of interest that must be repaid.

---

Loan Eligibility Requirements

• You must be meeting Satisfactory Academic Process (SAP).
• You must be enrolled for at least six credits.
• You must be enrolled in a degree program here at the university.
• You must have a FAFSA application on record
  • If selected for verification, all required documents must be submitted and verification must be complete prior to loan being processed.

---

Direct Loan Limits

• Undergraduate Limit (Dependent Student)

  Undergraduate Student Annual Loan Limit

  Undergraduate student loan limits range from $5,500 to $12,500 per year depending on certain factors, including the student's year in college and other aid received.

  Dependent Students	Maximum Eligibility
  Freshman (0-23 credits)	$5,500	If eligible, up to $3,500 may be subsidized.
  Sophomore (24-56 credits)	$6,500	If eligible, up to $4,500 may be subsidized.
  Junior or Senior (57- credits)	$7,500	If eligible, up to $5,500 may be subsidized.

  Undergraduate Student Combined Total (Aggregate) Limit

  An aggregate loan limit is the total amount of money a student is allowed to borrow during his/her undergraduate education.

  Dependent Undergraduate Student: $31,000 (no more than $23,000 can be subsidized)

• Undergraduate Limit (Independent Student)

  Undergraduate Student Annual Loan Limit

  Undergraduate student loan limits range from $5,500 to $12,500 per year depending on certain factors, including the student's year in college and other aid received.

  Independent Students	Maximum Eligibility
  Freshman (0-23 credits)	$9,500	If eligible, up to $3,500 may be subsidized.
  Sophomore (24-56 credits)	$10,500	If eligible, up to $4,500 may be subsidized.
  Junior or Senior (57 - credits)	$12,500	If eligible, up to $5,500 may be subsidized.

  Undergraduate Student Combined Total (Aggregate) Limit

  An aggregate loan limit is the total amount of money a student is allowed to borrow during his/her undergraduate education.

  Independent Undergraduate Student: $57,500 (no more than $23,000 can be subsidized)

• Graduate Limit

  Graduate Student Annual Loan Limit

  Subsidized	Unsubsidized
  N/A	$20,500

  Graduate Student Combined Total (Aggregate) Limit

  An aggregate loan limit is the total amount of money a student is allowed to borrow during his/her education. The graduate aggregate limit includes all federal loans received for undergraduate study as well.

  Graduate Student: $138,500 (no more than $65,500 can be subsidized)*

  *Effective for periods of enrollment beginning on or after July 1, 2012, graduate students are no longer eligible to receive Direct Subsidized Loans. The $65,500 subsidized aggregate loan limit for graduate students includes subsidized loans that a graduate student may have received for periods of enrollment that began before July 1, 2012, or for prior undergraduate study. 
  

Direct Loan Interest Rates

The interest rate for a federal student loan varies depending on:

• • the loan type and
  • the first disbursement date of the loan (for most types of federal student loans.

The table below provides interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2024, and before July 1, 2025.

Interest Rates for Direct Loans First Disbursed on or After July 1, 2024, and Before July 1, 2025

Loan Type	Borrower Type	Fixed Interest Rate
Direct Subsidized Loans and Direct Unsubsidized Loans	Undergraduate	6.53%
Direct Unsubsidized Loans	Graduate or Professional	8.08%
Direct PLUS Loans	Parents and Graduate or Professional Students	9.08%

All Interest rates shown in the chart above are fixed rates.  A fixed rate will not change for the lift of the loan.

If your loan was disbursed before July 1, 2024 you likely have a different interest rate.
View interest rates for loans disbursed earlier.

How Is The Interest Rate Determined

Interest rate is determined annually for all loans first disbursed during any 12-month period beginning on July 1 and ending on June 30, and is equal to the high yield of the 10-year Treasury notes auctioned at the final auction held before June 1 of that 12-month period, plus a statutory add-on percentage that varies depending on the loan type.

Direct Loan Origination Fees