Federal Direct Subsidized and Unsubsidized Loan

Undergraduate and Bachelor’s Plus students may be eligible for both Federal Direct Subsidized and Unsubsidized Loans. Subsidized means that the federal government pays the interest while the student is enrolled at least half-time; this loan is need-based only. Interest accrues on Unsubsidized Loans while the student is in school and the interest can be paid any time before graduation or added to the principal after graduation or withdrawal. To find information on paying your interest while in school, contact your loan servicer.

Degree-seeking Graduate students may be eligible for the Federal Direct Unsubsidized Loan. The student is responsible for the interest while in school; interest can be paid quarterly while enrolled or capitalized and added to the loan principal after the borrower ceases to be enrolled at least half time.

Annual Loan Amount

  • Dependent Undergraduate: up to $7,500
  • Dependent Bachelor's Plus Students and preparatory coursework: up to $5,500
  • Independent Undergraduate and Bachelor’s Plus Students: up to $12,500
  • Graduate Students: up to $20,500

Aggregate Limits

  • Dependent Undergraduate students (except those whose parents are unable to obtain a PLUS Loan): up to $31,000; No more than $23,000 may be in subsidized loans
  • Independent Undergraduate students (and dependent students whose parents are unable to obtain a PLUS Loan): up to 57,500; No more than $23,000 may be in subsidized loans
  • Graduate and professional degree students: up to $138,500 (including debt borrowed as an undergraduate)

Interest Rate

Date Borrowed Graduate Subsidized Rate Graduate Unsubsidized Rate Undergraduate/ Bachelor's Plus Subsidized Rate Undergraduate/ Bachelor's Plus Unsubsidized Rate
2023-2024 n/a 7.05% 5.5% 5.5%
2022-2023 n/a 6.54% 4.99% 4.99%
2021-2022 n/a 5.28% 3.73% 3.73%
2020-2021 n/a 4.30% 2.75% 2.75%
2019-2020 n/a 6.079% 4.529% 4.529%
2018-2019 n/a 6.60% 5.05% 5.05%
2017-2018 n/a 6.00% 4.45% 4.45%

Federal Direct Loan interest rates are fixed. Federal Direct Loan interest rates will be recalculated annually, effective July 1st, based on the 10-year Treasury Note Index plus 2.05 percent, capped at 8.25 percent.

Loan Fees: Loan fees are fixed at 1.057 percent for loans first disbursed on or after 10/1/20 and before 10/1/24. Reduce loan proceeds by 1.057 percent to determine the amount that will credit to your account (i.e. if a loan is $5,000, the amount credited is $4,947).

Repayment: Begins six months after the student ceases to be enrolled at least half time; several repayment options are available; the standard plan provides up to 10 years for repayment. Further information regarding repayment options, loan deferment, and loan forgiveness programs is available at studentaid.gov.

Federal Direct Graduate Plus Loan

  • Loan Amount: Up to the cost of education minus any other financial aid.
  • Interest Rate: Interest is fixed at 8.05 percent for loans first disbursed on or after 7/1/23 and before 7/1/24.
  • Loan Fees: Loan fees are fixed at 4.228 percent for loans first disbursed on or after 10/1/20 and before 10/1/24. Reduce loan proceeds by 4.228 percent to determine the amount that will credit to the student's account (i.e. if the loan is $10,000, the amount credited is $9,576).
  • Approval: A credit check is completed by the federal government when a graduate student completes a PLUS Loan Request at studentaid.gov. The student will see the credit check results immediately and, if approved, the loan will be added to the financial aid offer letter.
  • Repayment: Can be deferred while the student is enrolled at least half the time. Interest will accrue and may be paid while in school or added to the principal when the student is no longer enrolled.

Federal Direct Parent Plus Loan

(For parents of Dependent Undergraduate or Bachelor’s Plus students only)

  • Loan Amount: Up to the cost of education minus any other financial aid.
  • Interest Rate: Interest is fixed at 8.05 percent for loans first disbursed on or after 7/1/23 and before 7/1/24.
  • Loan Fees: Loan fees are fixed at 4.228 percent for loans first disbursed on or after 10/1/20 and before 10/1/24. Reduce loan proceeds by 4.228 percent to determine the amount that will credit to the student's account (i.e. if a loan is $10,000, the amount credited is $9,576).
  • Approval: A credit check is completed by the federal government when a parent submits the Paren PLUS Loan Request at studentaid.gov. The parent will see the credit decision immediately. If credit is denied, the dependent student will be awarded an additional Federal Direct Unsubsidized Loan of up to $5,000 (amounts vary).

Repayment: Begins two months after the loan is fully disbursed. However, please note that payments on Federal Parent PLUS Loans disbursed July 1, 2008, or after, may be deferred upon request to the loan servicer while the student is enrolled at least half time. Interest will accrue and may be paid or added to the principal when the child is no longer enrolled.