Federal Direct Loan

• Subsidized loans, awarded to students who demonstrate financial need, do not accrue interest during periods of at least half-time enrollment and deferments.

Federal Student Aid Time Limitation on Direct Subsidized Loan Eligibility for First-Time Borrowers

• Unsubsidized loans accrue interest beginning at the time the loan is disbursed. Interest may be paid during periods of enrollment or may be capitalized and added to the principal amount of the loan when the loan enters repayment.

If you have questions about existing Federal loans, you can review your student loan history at studentaid.gov.

Interest Rates

Grade Level	Academic Year	Loan Type	Interest Rate*
Undergraduate Students (CAS)	2025-26	Subsidized & Unsubsidized	6.39% fixed
Graduate & Law Students	2025-26	Unsubsidized	7.94% fixed

 *Interest rates for Academic Year 2024-25 have an interest rate of 6.53% fixed for undergraduates and 8.08% fixed for graduate and law students (Unsub only), for loans with a first disbursement date of July 1, 2024 but prior to June 30, 2025.

Loan Amounts

As of July 1, 2008, the maximum amount of Federal Direct Loan funds that a student may borrow for an academic year is as follows.

Dependent students whose parents can borrow Federal Direct PLUS Loan

Borrower’s Academic Level	Base Amount	Additional Unsubsidized
Freshman	$3,500	$2,000
Sophomore	$4,500	$2,000
Junior and Senior	$5,500	$2,000

Dependent students whose parent cannot borrow Federal Direct PLUS Loan and all independent students

Borrower’s Academic Level	Base Amount	Additional Unsubsidized
Freshman	$3,500	$6,000
Sophomore	$4,500	$6,000
Junior and Senior	$5,500	$7,000
Graduate and Law Students*	$0	$20,500

*Note as of July 1, 2026, law students have a $50,000 annual borrowing limit.

Fees and Disbursements

For all Direct Sub/Unsub loans for which the earliest disbursement date is on or after October 1, 2020 but before October 1, 2025, the origination fee is 1.057%. Be aware of loan fees when determining the net disbursement amount (principal minus fees).

Effective July 1, 2026, Federal Direct Subsidized and Unsubsidized Loans will be prorated based on the number of credits a student is taking per semester.

• If students are enrolled full time per Fall and Spring semester, they will be eligible for 50% of the annual amount for each semester.
• If students are enrolled less than full time, loans will be prorated and reduced based on the number of credits being taken per semester.
• The total annual percentage used will vary based on fall and spring enrollment.

Enrollment Status	# of credits	Fall	Spring	Total
Full-Time	12+	50%	50%	100%
	11	46%	46%	92%
Three-Quarter Time	10	42%	42%	83%
	9	38%	38%	75%
	8	34%	34%	67%
	7	29%	29%	58%
Half-Time	6	25%	25%	50%
Less Than Half-Time	<5	0%	0%	0%

Processing

Process your Federal Direct Loans.

Returning Loan Funds to Your Lender

We will return loan funds if your written request is received within 14 days after the disbursement notification has been sent to you.

After this time, you can return Direct Loan funds by check to your servicer. For information about your servicer, please visit studentaid.gov.

To ensure that the payment is properly credited, you will need to include a cover letter stating whether the funds are for a loan payment or for canceling (inactivating) a loan. This note should indicate which loan(s) the returned funds should be applied to, and in what amounts (if repayment is split between loans).

A borrower has up to 120 days after the disbursement date to return Direct Loan funds without being responsible for paying fees and any accrued interest on the amount canceled.

Estimating Your Monthly Loan Payments

The minimum monthly payment is $50 and the standard repayment period is 10 years (120 payments). Other repayment options are available for students who meet the criteria and request their servicer modify their repayment plan. Additional details about repayment options and provisions for deferment and/or forbearance can be found on the “Repay Your Loans” section of the Department of Education website.

The following table is based on a standard 10-year repayment plan. Use this table to estimate the monthly payment amount for your Federal Direct Loan(s).

TOTAL AMOUNT BORROWED	INTEREST RATE 5.00%	6.00%	6.80%	7.50%	8.00%
3,500.00	50.00	50.00	50.00	50.00	50.00
4,500.00	50.00	50.00	51.79	53.42	54.60
5,500.00	58.34	61.06	63.29	65.29	66.73
8,500.00	90.16	94.37	97.82	100.90	103.13
12,000.00	127.28	133.22	138.10	142.44	145.59
16,000.00	169.70	177.63	184.13	189.92	194.12
20,500.00	217.43	227.59	235.91	243.34	248.72
25,000.00	265.16	277.55	287.70	296.75	303.32
30,000.00	318.20	333.06	345.24	356.11	363.98
35,000.00	371.23	388.57	402.78	415.46	424.65
45,000.00	477.29	499.59	517.86	534.16	545.97