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 Standing Dependent
Undergraduate
Independent
Undergraduate
Graduate
Freshman
(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
Sophomores
(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 Stafford 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 Stafford 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 Type Borrower Interest Rate Loan Fees Interest Rate Loan Fees
 

 

First Disbursed on or After July 1, 2022 and Before July 1, 2023 First Disbursed on or After July 1, 2023 and Before July 1, 2024
Direct Subsidized Loans and Direct Unsubsidized Loans Undergraduate 4.99% 1.057% 5.50% 1.057%
Direct Subsidized Loans Graduate or Professional 6.54% 1.057% 7.05% 1.057%
Direct PLUS Loans Parents and Graduate or Professional Students 7.54% 4.228% 8.05% 4.228%

FAQs

Office of Financial Aid & Scholarships

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