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Federal Direct Subsidized and Unsubsidized Loans

Federal Direct Loans may be available to undergraduate, graduate, and professional students.

Who Is the Borrower?

For Federal Direct Subsidized and Unsubsidized Loans, the student is the borrower of the loan. This means the student is responsible for:

  • Accepting or declining the loans
  • Completing loan requirements such as entrance counseling, loan agreements (Master Promissory Notes), and exit counseling
  • Monitoring the amount they have borrowed on the Federal Student Aid website
  • Repaying the loans

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Enrollment Requirements

Students must be enrolled at least half-time in federal aid-eligible courses.

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Additional Requirements

Loan funds cannot disburse as payment to the student's account until all requirements have been completed. If a student is offered a Federal Direct Loan as part of their financial aid offer, they must:

  1. Accept the loan
  2. First-time borrowers must log into the Federal Student Aid website with their Federal Student Aid (the same log in the student used to submit their FAFSA) to complete the Entrance Counseling and Loan Agreement (Master Promissory Note) requirements
  3. Continue to maintain satisfactory academic progress for financial aid eligibility

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How to Apply

Complete the Free Application for Federal Student Aid (FAFSA) for consideration for subsidized and unsubsidized loans.

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Quick Facts

  • Interest rates on Federal Direct Loans are fixed, meaning the interest rate on the amount borrowed for an academic year will remain the same for the life of the loan.
  • A fee is retained by the federal government on Federal Direct Loans, so the accepted and disbursed amounts will differ.
  • Graduate/Professional level students are not eligible for subsidized loans.
  • A borrower has 120 days to return any portion of a federal loan to the institution without being assessed any interest or fees on the amount returned.

Frequently Asked Questions

See the FAQs page for subsidized and unsubsidized loans for answers to some of the most frequently asked questions such as "What is the difference between a subsidized and an unsubsidized loan?" and "How much can I borrow each year?"

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