Direct Subsidized & Direct Unsubsidized Loans

Direct Subsidized and Direct Unsubsidized Loan Information

Direct Subsidized and Direct Unsubsidized loans are available to undergraduate and graduate students and are low-interest loans that provide students with additional funds for college.  These loans are awarded as either subsidized or unsubsidized (subsidized loan is only available for undergraduates).  Both require the completion of the FAFSA.  Application for these loans must be completed prior to the last day of  Spring classes (or the last day of summer classes if you are attending summer session).

Direct Subsidized Loan
  • A need-based loan available only for undergraduate students.
  • Made directly to the student at a fixed interest rate of 4.66% for undergraduate loans disbursed on or after July 1, 2014.
  • Origination fee of 1.072% deducted from each loan disbursement.
  • Payments are deferred as long as the student is enrolled at least half-time (6 or more credit hours).
  • Repayment of interest and principal does not begin until six months after completion of full-time school.
  • Subsidized loans first disbursed on or after July 1, 2012 will not be eligible for the interest subsidy during the 6-month grace period.
Direct Unsubsidized Loan
  • Not based on demonstrated need and available for both undergraduate and graduate students.
  • Interest begins to accrue from the date of disbursement.  Made directly to the student at a fixed interest rate of 4.66% for undergraduates and 6.21% for graduate students.
  • Origination fee of 1.072% deducted from each loan disbursement.
  • Payments are deferred as long as the student is enrolled at least half-time (6 or more credit hours).
  • Repayment of accrued interest and principal does not begin until six months after completion of full-time school unless the student has opted to pay the interest as it is accruing.

Funds are disbursed in two separate payments sent directly to the Bursar's Office at the College, generally at the start of each semester. The maximum Subsidized Loan that can be borrowed by dependent undergraduates is $3,500 for freshmen, $4,500 for sophomores, and $5,500 each year for juniors and seniors.  All undergraduates are eligible for an additional $2000 of Unsubsidized Loan as of July 1st, 2008.   Independent students can borrow an additional $4,000 per year for each of the first two years and $5,000 for each of the last two years.

Graduate students may be eligible to borrow up to $20,500 in the unsubsidized loan depending on their cost of attendance.

Aggregate Loan Limits

This represents the maximum total borrowing allowed under the Direct Sub/Unsub loan program.

Dependent Undergraduates - $31,000 (no more than $23,000 may be subsidized)
Independent Undergraduates - $57,500 (no more than $23,000 may be subsidized)
Graduate Students - $138,500 (no more than $65,500 may be subsidized)

Apply for a Direct Subsidized/Unsubsidized Loan

For detailed instructions on how to apply for a Direct Loan, please visit our loan application instructions page.