Direct Student Loans are federal student loans that can be subsidized or unsubsidized depending on the student’s financial need.
Subsidized Loans are awarded on the basis of financial need. The federal government pays the interest on these loans while you are in school. Graduate students are not eligible for subsidized loans.
Unsubsidized Loans are not awarded on the basis of need and you will be charged interest on the loan until the loan is paid off. While you are in school you can make interest only payments to avoid having the interest added to the original loan amount.
How to Apply
How much can a student borrow each year?
| Dependent Undergraduates | Subsidized Amount |
Additional Unsubsidized* |
Supplemental Unsubsidized |
Annual Maximum |
|---|---|---|---|---|
| First year | $3,500 | $2,000 | $ - | $5,500 |
| Second year | $4,500 | $2,000 | $ - | $6,500 |
| Third year and beyond | $5,500 | $2,000 | $ - | $7,500 |
| Graduate Programs | $0 | $ - | $20,500 | $20,500 |
Aggregate Limits (The maximum a student can borrow):
| Dependent Undergraduates | Subsidized Amount |
Additional Unsubsidized* |
Supplemental Unsubsidized |
Annual Maximum |
|---|---|---|---|---|
| Dependent Undergraduates | $23,000 | $2,000 per year | $2,000 per year | $31,000 |
| Independent undergraduates or dependent undergrad whose parents are unable to borrow PLUS | $23,000 | $2,000 per year | Not to exceed aggregate | $57,500 |
| Graduate | $65,500 | Not to exceed aggregate | $138,500 |
Interest Rates for Direct Loans are available at https://studentaid.gov/understand-aid/types/loans/interest-rates
Important Financial Aid Information for Graduating Students and Those Entering Loan Repayment