Federal Direct Subsidized and Unsubsidized Loans
Federal Direct Loans may be available to undergraduate, graduate, and professional students.
- Who Is the Borrower?
- How to Apply
- Enrollment Requirements
- Additional Requirements
- Quick Facts
- Frequently Asked Questions
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 their loan requirements such as entrance counseling, loan agreement (Master Promissory Notes), and exit counseling
- Maintaining satisfactory academic progress for financial aid eligibility.
- Monitoring the amount they have borrowed on the Federal Student Aid website
- Repaying their loans
How to Apply
Complete the Free Application for Federal Student Aid (FAFSA) for consideration for subsidized and unsubsidized loans.
Loan funds cannot disburse as payment to your student account until all requirements have been completed. If you are offered a Federal Direct Loan as part of your financial aid offer, before it can disburse you must:
- Accept the loan
- First-time borrowers must complete entrance counseling and their loan agreement/master promissory note (MPN)
- Be enrolled at least half-time for the semester in federal and state aid-eligible courses.
- Continue to maintain satisfactory academic progress for financial aid eligibility
- 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. You can click here to download an origination fee spreadsheet that will help you calculate the amount that will disburse as payment toward your institutional charges based on the amount you borrow for Federal Subsidized, Unsubsidized, Parent PLUS, and Graduate PLUS Loans OR how much you should borrow to disburse a certain amount (for example, to cover a certain balance due).
- 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 our Subsidized and Unsubsidized FAQs page for more answers, such as the difference between a subsidized and unsubsidized loans, how much can be borrowed each year, interest rates, additional loan fees, and who to contact for your loan information.