Federal Direct Loans
The William D. Ford Federal Direct Loan Program is a service of the U.S. Department of Education. If you are eligible to borrow through the program, you do so at interest rates that are lower than those of many other student loans and have more favorable deferment, forgiveness, and cancellation options.
Please note: For admitted Graduate Degree candidates, Harvard has developed a University-wide Preferred Lender List for the 2026-2027 academic year. For more information, please visit Harvard University Student Financial Services Preferred Lender List.
Federal Direct Subsidized and Unsubsidized Loans
To be eligible for Federal Direct Loans, you must be enrolled at least half time — 8 credits per term for fall or spring, 4 credits in summer — in courses that fulfill requirements for your undergraduate, graduate, or premedical program.
There are two types of Federal Direct Loans:
- Subsidized Direct Loan: The federal government pays the interest while you are enrolled in school at least half time. These loans are awarded based on financial need and are available to undergraduate and premedical program candidates only.
- Unsubsidized Direct Loan: You are responsible for the interest from the date of disbursement. You may pay interest quarterly or allow the interest to accrue.
To receive Federal Direct Loans, you must complete:
- Entrance counseling and sign a promissory note before disbursement can take place
- Exit counseling before leaving school
See StudentAid.gov for current interest rates and origination fees.
Maximum Federal Direct Loan Amounts
The U.S. Department of Education sets annual borrowing limits that vary by your year in school and dependency status. Direct Loan amounts may not exceed your cost of attendance.
The chart below lists the maximum loan amounts for Federal Direct Loans that students may borrow per academic year based on full time enrollment status – 16 credits per term for fall and spring, 8 credits in summer.
Under the One Big Beautiful Bill Act (OBBBA), for Direct loans awarded and disbursed for the 2026-2027 academic year and beyond, a student’s annual loan limit must be adjusted for less than full time enrollment (known as the Schedule of Reductions). In any case in which a student is enrolled in an eligible program on a less than full time basis during any academic year, the amount of any Direct Loan that student may borrow for an academic year or its equivalent shall be reduced in direct proportion to the degree to which that student is not so enrolled on a full-time basis, as of the date the institution determined the student’s eligibility for the disbursement. This requirement applies to all undergraduate, Premedical and graduate student Direct Loan borrowers.
Undergraduate Student
| Year in School | Dependent Student | Independent Student |
|---|---|---|
| First-year (fewer than 32 credits) | $5,500 — no more than $3,500 of this amount may be in subsidized loans. | $9,500 — no more than $3,500 of this amount may be in subsidized loans. |
| Second-year (32 to 64 credits) | $6,500 — no more than $4,500 of this amount may be in subsidized loans. | $10,500 — no more than $4,500 of this amount may be in subsidized loans. |
| Third-year or beyond (64 credits or more) | $7,500 — no more than $5,500 of this amount may be in subsidized loans. | $12,500 — no more than $5,500 of this amount may be in subsidized loans. |
| Premedical Program | $5,500 — no more than $5,500 of this amount may be in subsidized loans. | $12,500 — no more than $5,500 of this amount may be in subsidized loans. |
Graduate Student
| Dependent Student | Independent Student |
|---|---|
| Not Applicable (all graduate students are considered independent) | $20,500 (unsubsidized only) |
Subsidized and Unsubsidized Aggregate Loan Limit
| Dependent Student | Independent Student |
|---|---|
| $31,000 for undergraduates — no more than $23,000 of this amount may be in subsidized loans. | $57,500 for undergraduates — no more than $23,000 of this amount may be in subsidized loans. $100,000 for graduate students* — does not include amounts borrowed as an undergraduate student. *Limited exception – Students are not subject to the new loan limits (for up to 3 academic years or the remainder of their expected time to credential, whichever is less) if they remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026 and for whom a Direct Loan was made for that program of study prior to July 1, 2026. |
Canceling or reducing Federal Direct Loans
You have the right to cancel or reduce the amount of your Federal Direct Loan. To do so, notify Student Financial Services in writing. If the loan has already been disbursed, you must return the funds to Student Financial Services.
Federal Direct Plus Loans
Federal Direct Graduate PLUS Loans
The One Big Beautiful Bill Act (OBBBA) eliminates Federal Direct Graduate PLUS Loan borrowing for most graduate candidates beginning with the 2026-2027 academic year. Graduate degree candidates who meet certain limited exceptions may be eligible to borrow a Graduate PLUS Loan under the pre-July 1, 2026, regulations. Please contact your Financial Aid Advisor for more information.
You must complete a FAFSA and be eligible for Direct Subsidized/Unsubsidized Loans before applying for the Graduate PLUS Loan. To apply:
- Complete a promissory note for the Direct Graduate PLUS Loan online. Please note that a credit check is part of the application process.
- Complete entrance counseling online
- Complete exit counseling online before leaving school
Repayment begins 60 days after the loan is fully disbursed. Repayment can be deferred during periods of at least half-time enrollment
Federal Direct Parent PLUS Loans
The Federal Direct Parent PLUS Loan Program is a loan program for parents of dependent candidates. Your parents may apply to borrow a maximum of $20,000 per year per dependent student. The aggregate limit per dependent student is $65,000, without regard to amounts forgiven, repaid or discharged.
For your parent to be eligible to apply for a PLUS Loan, you must be:
- Admitted to an undergraduate program or premedical program
- Enrolled at least half time (8 credits in the fall or spring term; 4 credits in summer)
- Classified as dependent by the U.S. Department of Education
If your parent wishes to apply for a PLUS Loan, you must submit a complete financial aid application, including the FAFSA. Your parent must complete a promissory note for the Parent PLUS Loan and inform Student Financial Services when you have done so. See the online Parent PLUS Loan promissory note.
Repayment may be deferred while the dependent candidate is enrolled at least half time.
See StudentAid.gov for current interest rates and origination fees.
Canceling or Reducing Federal Direct PLUS Loans
You, or your parent if borrowing on your behalf, have the right to cancel or reduce the amount of your Federal Direct PLUS Loan. To do so, you or your parent should notify Student Financial Services in writing. If the loan has already been disbursed, funds must be returned to Student Financial Services.
