Federal Direct Loans
The William D. Ford Federal Direct Loan Program is a service of the US 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.
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.
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
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.
See StudentAid.gov for current interest rates and origination fees.
Maximum Federal Direct Loan Amounts
The US Department of Education sets borrowing limits that vary by your year in school and dependency status (see the chart below). Direct Loan amounts may not exceed your cost of attendance.
If you qualify for a subsidized loan that is less than the annual subsidized loan limit, you may receive an unsubsidized loan to cover the difference between the annual limit and the subsidized loan amount.
The chart below lists the maximum loan amounts for Federal Direct Loans that students may borrow each academic term.
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. $138,500 for graduate students — no more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study. |
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 Federal Direct Graduate PLUS Loan Program is a student loan program for graduate candidates. You may apply for an amount up to your cost of attendance less any other financial aid you are receiving.
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 an amount up to the cost of attendance, less any other financial aid you are receiving.
Repayment may be deferred while the dependent candidate is enrolled at least half time.
See studentaid.gov for current interest rates and origination fees.
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)
- Classified as dependent by the US 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.
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.