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 calender 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 studentaid.gov.
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.
Undergraduate Annual Loan Limits (Dependent Students)
Loan limits range from $5,500 to $7,500 per year based on your class level. A portion of these loans may be subsidized if you qualify.
Freshman (0–23 credits)
- Up to $5,500 per year
- Up to $3,500 may be subsidized
Sophomore (24–56 credits)
- Up to $6,500 per year
- Up to $4,500 may be subsidized
Junior or Senior (57+ credits)
- Up to $7,500 per year
- 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 Annual Loan Limits (Independent Students)
Loan limits range from $9,500 to $12,500 per year depending on your class level. A portion of these loans may be subsidized if you
qualify.
Freshman (0–23 credits)
- Up to $9,500 per year
- Up to $3,500 may be subsidized
Sophomore (24–56 credits)
- Up to $10,500 per year
- Up to $4,500 may be subsidized
Junior or Senior (57+ credits)
- Up to $12,500 per year
- Up to $5,500 may be subsidized
Total (Aggregate) Loan Limit
The aggregate loan limit is the total amount you can borrow as an undergraduate student.
- Independent Undergraduate Students: Up to $57,500 total
- No more than $23,000 may be subsidized
Graduate Student Annual Loan Limits
Graduate students are not eligible for subsidized loans for current periods of enrollment.
- Unsubsidized Loan Limit: Up to $20,500 per year
Graduate Student Combined Total (Aggregate) Limit
An aggregate loan limit is the total amount of money a student is allowed to borrow during their education. The graduate aggregate limit includes all federal loans received for undergraduate study as well.
- Total Aggregate Limit: $138,500
- Subsidized Loan Portion Limit: No more than $65,500 (includes any subsidized loans received as an undergraduate)
* Effective for enrollment periods beginning on or after July 1, 2012, graduate students are no longer eligible to receive Direct Subsidized Loans. The $65,500 subsidized aggregate limit may include loans received prior to that date or during undergraduate study.
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, 2025, and before July 1, 2026.
Interest Rates for Direct Loans First Disbursed on or After July 1, 2025, and Before July 1, 2026
| Loan Type | Borrower Type | Fixed Interest Rate |
| Direct Subsidized & Unsubsidized Loans | Undergraduate | 6.39% |
| Direct Unsubsidized Loans | Graduate or Professional | 7.94% |
| Direct PLUS Loans | Parents and Graduate or Professional Students | 8.94% |
All Interest rates shown in the chart above are fixed rates. A fixed rate will not change for the life of the loan.
IF your loan was disbursed before July 1, 2025 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.
Most Federal student loans have loan fees. These fees are a percentage of the total loan amount. A loan fee comes out of the amount of money that is disbursed (paid out) to your while you're in school. This means the money you receive will be less the amount you actually borrow. You're responsible for repaying the entire amount you borrowed and not just the amount you received.
The chart below shows the loan fees for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after Oct. 1, 2019
Loan Fees for Direct Subsidized Loans and Direct Unsubsidized Loans
| First Disbursement Date | Loan Fee |
| On or after 10/1/20 and before | 1.057% |
| On or after 10/1/19 | 1.059% |
Loans for Non-Matriculated/Non-Degree Students:
Undergraduate and Graduate Students - Generally as a non-degree student you are not eligible for federal assistance.However, if you are taking prerequisites leading to admission into a degree granting
program you may be eligible. You will need to submit a Preparatory Coursework Agreement. If your request is approved, you may be eligible
for a federal loan. You will need to file a FAFSA application. Eligible non-matriculated students may receive loans for one consecutive, twelve-month period. If the student is unable to matriculate into a degree-earning program at the end
of the twelve-month term of eligibility, he/she will no longer be able to receive
additional federal loans. Once the student becomes matriculated, he/she may continue
to receive federal loans and may also be eligible for other types of aid. If you are not eligible for a Preparatory Coursework Agreement you may apply for a private/alternative loan to cover your education expenses.
Additional Resources
Federal Student Aid Website for additional information on student loans.
NSLDS Consumer Loan Disclosure Information
Institutions that enter into an agreement with a potential student or parent of a student regarding a Title IV loan are required to inform the student or parent that the loan will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system. [HEOA Sec. 489 amended Sec. 485B (d) (4) (20 U.S.C. 1092b)]