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.
Schedule of Reduction
Schedule of Reduction (SOR) for Federal Direct Loans
Beginning July 1, 2026, Federal Direct Loan eligibility will be based on your enrollment level. If you are enrolled in fewer than the number of credits required for full-time enrollment during the academic year, your annual Federal Direct Loan amount may be reduced proportionally.
Your loan eligibility is calculated in two steps:
Step 1: Determine your enrollment percentage (Schedule of Reduction).
Divide the number of credits you are enrolled in by the number of credits required for full-time enrollment during the academic year.
Credit Hours Enrolled ÷ Credit Hours Required for Full-Time Enrollment = Schedule of Reduction (SOR)
Step 2: Calculate your annual loan eligibility.
Multiply your Schedule of Reduction percentage by your annual Federal Direct Loan limit.
Annual Loan Limit × SOR = Prorated Loan Amount
Examples
Undergraduate Student Examples
- Full-time status is 12+ credit hours per semester.
| Enrollment Status | Loan Type | Annual Base Limit | Schedule of Reduction | Schedule of Reduction Amount |
|---|---|---|---|---|
Full Time (12 hrs Fall / 12 hrs Winter) | Subsidized Unsubsidized | $3,500 $2,000 | 100% | Full Amount Full Amount |
Part Time (6 hrs Fall / 6 hrs Winter) | Subsidized Unsubsidized | $3,500 $2,000 | 50% | $1,750 $1,000 |
Graduate Student Examples
- Full-time status is 8+ credit hours per semester.
| Enrollment Status | Annual Base Limit | Schedule of Reduction | Schedule of Reduction Amount |
|---|---|---|---|
Full Time (9 hrs Fall / 9 hrs Winter) | $20,500 | 100% | $20,500 |
Part Time (75%) (6 hrs Fall / 6 hrs Winter) | $20,500 | 75% | $15,375 |
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 | Lifetime |
|---|---|---|---|---|
| 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 Direct Loans Upon Graduation | $31,000 (only $23,000 can be in subsidized loans) | $57,500 (only $23,000 can be in subsidized loans) | $100,000 Graduate loan debt does not include undergraduate loan amounts. | $257,500 Once at maximum, unable to borrow federally, even if borrower repays all or a portion of the loan balance. |
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, 2026 and Before July 1, 2027 | First Disbursed on or After July 1, 2025 and Before July 1, 2026 | ||||
| Direct Subsidized Loans and Direct Unsubsidized Loans | Undergraduate | 6.52% | 1.057% | 6.39% | 1.057% |
| Direct Unsubsidized Loans | Graduate or Professional | 8.07% | 1.057% | 7.94% | 1.057% |
| Direct PLUS Loans | Parents and Graduate or Professional Students | 9.07% | 4.228% | 8.94% | 4.228% |
FAQs
You must meet the general eligibility requirements for all Federal student aid programs. To view these requirements, please review the student status eligibility from the Federal Student Aid website. You apply by completing the Free Application for Federal Student Aid (FAFSA).
First time borrowers in the Direct Loan Program are also required to complete Entrance Loan Counseling and a Master Promissory Note (MPN) at studentaid.gov. Your FSA ID is required to access the secured website.
To view and accept your loan offers, visit the Financial Aid and Scholarship Self Service Portal.
After accepting your loans online on the Financial Aid & Scholarship Self Service portal and completing the federal requirements of loan counseling and the Master Promissory Note, loan funds will be applied to your tuition account electronically as early as ten days prior to the start of the semester. Aid is disbursed on a semester-by-semester basis.
If your financial aid exceeds the amount of your tuition, you are eligible for a refund. Enroll in the direct deposit program at the Student Accounts website.
Use the Loan Revision Form or email your request to [email protected]. Although students can accept their loans online at the Financial Aid & Scholarship Self-Service, changes cannot be made online.
If your loan has been disbursed, you will receive email notification of disbursement from the Office of Financial Aid & Scholarships. You must contact the Office of Financial Aid & Scholarships in writing (post or email) within 14 days of disbursement to cancel or reduce your loan. Canceled loan funds will be remitted to the Direct Loan Program. If your request is outside of the 14-day window, use the Refund Check Return Form.
It is important to remember that the cancellation or reduction of a loan does not change a tuition obligation at the University. If your other forms of financial aid do not cover all of your tuition, you will be responsible for meeting any outstanding tuition obligation.
After you graduate, withdraw or drop below half-time enrollment status, you will have 6 months before you begin monthly repayment. This is called your grace period. During the grace period for all Direct Loan subsidized loans, no interest will accrue for the borrower.
- Before graduation, you will be required to participate in Exit Loan Counseling online. This process will be helpful in making a decision about your repayment plan.
- Your loan servicer will provide you with information on their general and secured website, by email and/or by letter.
- The Direct Loan Program offers you a choice of repayment plans. You may also change your repayment plan.
- For the most up-to-date information on repayment plans, please visit the Federal Student Aid website.
Under certain conditions, you can receive a deferment or a forbearance as long as your loan is not in default. A deferment allows the temporary postponement of payment.
One of the most important parts of your Entrance Loan Counseling and your Exit Loan Counseling discusses the situations in which these options would apply. You may wish to visit the Federal Student Aid website for information and forms for deferments and forbearances, and other special circumstances for borrowers, including cancellation, forgiveness or discharge of loans.
Failure to repay a loan according to the terms agreed to when you signed promissory notes will result in a status called default. In many cases, default can be avoided by submitting a request for deferment, forbearance or cancelation and by providing the required documentation before you reach the point of default.
The consequences of default are severe. Action may be taken to recover the money, including notifying national credit bureaus of your default. This will affect your credit rating for a long time. For example, you may find it very difficult to borrow money from a bank to buy a house or a car. In addition, if your account is turned over to the U.S. Department of Education for collection, the Internal Revenue Service (IRS) might withhold any U.S. individual income tax refund and apply it to the amount that you owe, or the agency holding your loan might ask your employer to deduct payments from your paycheck. In addition, you are responsible for the expenses in collecting the loan. If you decide to return to school, you will not be eligible for any additional Federal student aid until your loan has been repaid or you have made satisfactory payment arrangements (and kept them.) You may even face legal action.