Direct Loan
Federal Direct Loans are low interest rate loans that all students can apply for, provided they have filed a FAFSA and meet the criteria to receive federal aid.
As with all loans, Direct Loans must be repaid with interest. There are two types of student Direct Loans: Subsidized and Unsubsidized . You may receive one or both types depending on your dependency and financial status. To receive the funds, you must be enrolled at least half-time.
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Subsidized Direct
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Unsubsidized Direct
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|---|---|---|
Financial Need | Based on need | Not based on need |
Limits | Refer to the Annual and Aggregrate Loan Limit tables below. | Same as subsidized Direct Loan; combined subsidized and unsubsidized cannot exceed the Federal Direct Loan annual limits noted below. |
Interest | None, Federal government pays the interest while in school at least half-time and during the six-month grace period after you graduate, leave school, or drop below half-time enrollment. As of July 6, 2012, interest rate for the 2012-2013 academic year is fixed at 3.4%. | Interest rate is fixed at 6.8%. You are responsible for paying all the interest while in school and after graduating or dropping below half-time enrollment. You can allow the interest to accumulate while you are in school and during the grace period. If you do, the interest will be capitalized immediately at the time of repayment. The capitalized interest will be added to the principal balance. It is to your advantage to pay the interest while in college; you will pay less in the long run. |
Fees | The loan fee is 1.051%. (Effective for loans first disbursed after July 1, 2013.) | The loan fee is 1.051%. (Effective for loans first disbursed after July 1, 2013.) |
Repayment | Begins six months after you graduate, withdraw or cease to be enrolled at least half-time. The loan repayment period is 10 years, but may change depending on the loan repayment program you may choose or if you make more than the minimum payment. | Begins six months after you graduate, withdraw or cease to be enrolled at least half-time. The loan repayment period is 10 years, but may change depending on the loan repayment program you may choose or if you make more than the minimum payment. |
Additional Unsubsidized Direct loans: If your parent is denied a Parent PLUS loan, you are eligible to apply for an additional unsubsidized loan. The limits are listed below. Please contact SFS to see if you are eligible to apply.
Please Note:
- You are not required to borrow the full amount for which you are eligible; borrow conservatively to minimize indebtedness.
- Once awarded a federal loan, students still needs to apply for or claim their loan in order for it to be credited to their student account.
Annual Loan Limits
The following table shows the maximum amounts you can borrow each year for both the Stafford Subsidized and Unsubsidized loans:
Dependent Undergraduates | Base Amount (DSSL//DUSL) | Additional Unsubsidized Loan Amounts |
|---|---|---|
| 1st Year | $3,500 | $2,000 |
| 2nd Year | $4,500 | $2,000 |
| 3rd Year/4th Year | $5,500 | $2,000 |
Independent Undergraduates | ||
| 1st Year | $3,500 | $6,000 |
| 2nd Year | $4,500 | $6,000 |
| 3rd Year/4th Year | $5,500 | $7,000 |
Aggregate Loan Limits
The following table shows the maximum lifetime totals that you can borrow for both the Direct Subsidized and Unsubsidized loans:| Dependent Undergraduates* | |
|---|---|
| Direct Subsidized Loans/Direct Unsubsidized Loan (DSSL/DUSL) | $31,000 |
| Total | $31,000 |
INdependent Undergraduates*† | |
| Direct Subsidized Loan (DSSL) | $23,000 |
| Direct Unsubsidized Loan (DUSL) | $34,500 |
| Total | $57,500 |
| * Includes Teacher Credential students † includes Dependent Undergraduate students whose parents are denied the PLUS loan | |
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