William D. Ford Direct Loans

Federal Direct Loans are fixed-rate, low interest loans available to degree-seeking undergraduate and graduate students attending accredited schools at least half time. They are the most common source of college loan funds.

There are two types of Direct Loans:

  • Subsidized Direct Loans are need-based, and the government pays the interest on these loans while you are in school.  Subsidized loans are only available to undergraduate students.
  • Unsubsidized Direct Loans are not need-based, and you are responsible for all of the interest that accrues on the loan, including while you are in school.

For Direct Loans first disbursed between July 1, 2011 and June 30, 2012, the interest rate for undergraduate students is 3.4% for Subsidized and 6.8% for Unsubsidized. The interest rates for graduate students is 6.8% for Unsubsidized.

Federal regulations limit the dollar amount a student may receive in an academic year from a Federal Subsidized Loan (see chart below for limits).

To view your federal student loan history, visit the National Student Loan Data System (NSLDS) and log in with your FAFSA ID and PIN.

 

Annual Loan Limits for Direct Subsidized and Unsubsidized Loans
Loan limits are for a full academic year (Fall, Spring, and Summer). You may not receive more than
half of each loan limit per semester up to the annual limit at your academic level.

Year

Dependent Studentsa

Independent Studentsa

Freshman
(0-29 credit hours)

$5,500
(maximum $3,500 subsidized)

$9,500
(maximum $3,500 subsidized)

Sophomore
(30-59 credit hours)

$6,500
(maximum $4,500 subsidized)

$10,500
(maximum $4,500 subsidized)

Junior and beyondb
(60+ credit hours)

$7,500
(maximum $5,500 subsidized)

$12,500
(maximum $5,500 subsidized)

Teacher Certification
(after Bachelor's degree)

$5,500

$12,500
(maximum $5,500 subsidized)

Graduate and Professional

N/A

$20,500
(unsubsidized only)

  

Aggregate Loan Limits: Maximum Total Outstanding Loan Debt
 

Dependent Students

Independent Studentsc

Undergraduate

$31,000
(maximum $23,000 subsidized)

$57,500
(maximum $23,000 subsidized)

Graduate and Professional

N/A

$138,500



a -- Dependent students whose parents are unable to borrow PLUS Loans are eligible to apply for the Independent undergraduate loan limits.
b -- Second Bachelor candidates are treated as Undergraduate students for purposes of determining loan limits.
c -- The Graduate/Professional maximum includes Stafford Loans received for undergraduate study.