Award amount: see chart below
Interest: see table below for information on interest rates
Payment terms: six months after leaving school or dropping below half-time status
Available to undergraduates and graduates enrolled at least half time. The borrower will pay a fee of 1.066 percent of the loan amount, deducted each time a loan disbursement is made. If you have remaining Direct Loan eligibility, it is possible that it can be used for the Summer Session. Processing for summer financial aid begins in April. Contact your financial aid counselor for more information regarding eligibility. Federally funded Direct Loans come in two kinds: subsidized and unsubsidized.
The subsidized Direct Loan is based on need, as determined by the FAFSA. No interest accrues while you are enrolled at least half time and will begin accruing interest only after the six-month grace period has expired. However, loans made on or after July 1, 2012 and before June 30, 2014 will accrue interest even during the six-month grace period. Beginning July 1, 2012, subsidized Direct Loans will be available to undergraduate students only.
The unsubsidized Direct Loan is available to students regardless of need, and interest begins to accrue at disbursement. You may choose to make payments while enrolled or defer payment until you leave school.
Direct Loan Amount
- Freshmen: up to $5,500 per year (plus $4,000 per year unsubsidized for independent students)
- Sophomores: up to $6,500 per year (plus $4,000 per year unsubsidized for independent students)
- Juniors/Seniors: up to $7,500 per year (plus $5,000 per year unsubsidized for independent students)
- Graduate students: up to $20,500 per year (unsubsidized only)
HOW TO APPLY: A completed FAFSA and a loan promissory note are required for both types of Direct Loans. The U.S. Department of Education is the lender for all Direct and PLUS loans through the William D. Ford Federal Direct Loan Program. New students must accept or decline Direct Loan offer(s) in SpartanWeb, in the Financial Aid section from the Finances tab.
To disburse your federal student loan(s), the following documentation is required:
INTEREST RATES: The following fixed interest rate schedule applies for undergraduate Direct Loan borrowers for the subsidized portion of their loan only. The following interest rates apply for loans disbursed as follows:
|Loan Type||Borrower Type||Loans first disbursed on or after July 1, 2018, and before July 1, 2019||Loans first disbursed on or after July 1, 2019, and before July 1, 2020|
|Direct Subsidized Loan||Undergraduate||5.045%||4.529%|
|Direct Unsubsidized Loan||Undergraduate||5.045%||4.529%|
|Direct Unsubsidized Loan||Graduate or Professional||6.595%||6.079%|
|Direct PLUS Loan||Parents and Graduate or Professional Students||7.595%||7.079%|
To view the most up-to-date information on the Federal Direct Loans' interest rates and fees, please visit Federal Student Aid An Office of the U.S. Department of Education.