Direct Loans

You are considered for Direct loans when you complete the Free Application for Federal Student Aid.

The amount of loan funds you are eligible for depends on your grade level, dependency status, cost of attendance, and need.

Students must be enrolled at least half-time (6 credits for undergraduates, 4 credits for graduate students) to be considered for loan disbursements.

Subsidized loans

  • Loans that are offered to undergraduate students on the basis of financial need as determined on the FAFSA.
  • The government pays the interest on the loan during half-time enrollment and during authorized periods of deferment.

Unsubsidized loans

  • Loans offered to students regardless of need.  
  • Students are responsible for the interest that accrues during half-time enrollment and during authorized periods of deferment
  • Do not require payment on interest but students will receive a quarterly statement showing the amount of interest during each quarter.  It is recommended that students pay all or at least part of their quarterly interest.

Annual and Total Loan Limits for Direct Loans

Class StandingDependent
(0-24 credits)
$5,500 (only $3,500 can be in subsidized loans)$9,500 (only $3,500 can be in subsidized loans)Up to $20,500 in unsubsidized loans
(25-54 credits)
$6,500 (only $4,500 can be in subsidized loans)$10,500 (only $4,500 can be in subsidized loans) 
Juniors and Seniors
(55 credits and above)
$7,500 (only $5,500 can be in subsidized loans)$12,500 (only $5,500 can be in subsidized loans) 
Maximum Total Debt From Direct Loans Upon Graduation$31,000 (only $23,000 can be in subsidized loans)$57,500 (only $23,000 can be in subsidized loans)$138,500 (only $65,500 can be in subsidized loans)

Graduate loan debt will also include all Direct Loans received as an undergraduate.

Federal Loans Interest Rates

Interest Rates and Fees for federal student loans vary depending on the loan type and first disbursement date of the loan.

Loan TypeBorrowerInterest RateLoan FeesInterest RateLoan Fees
  First Disbursed on or After July 1, 2022 and Before July 1, 2023First Disbursed on or After July 1, 2023 and Before July 1, 2024
Direct Subsidized Loans and Direct Unsubsidized LoansUndergraduate4.99%1.057%5.50%1.057%
Direct Subsidized LoansGraduate or Professional6.54%1.057%7.05%1.057%
Direct PLUS LoansParents and Graduate or Professional Students7.54%4.228%8.05%4.228%


Office of Financial Aid and Scholarships

1183 - James C. Renick University Center
4901 Evergreen Road
Dearborn, MI 48128
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