Federal Direct Subsidized/Unsubsidized Loans

A subsidized loan is offered based on your financial need. If you qualify, the federal government will cover the interest on your loan while you're in school.

An unsubsidized loan, however, is not based on need. If you qualify for an unsubsidized loan, interest will begin accumulating from the moment the loan is disbursed until it’s paid off. You have the option to either pay the interest as it accrues or let it accumulate. If you allow the interest to accumulate, it will be added to the principal loan amount, which means you'll end up paying more over time. However, if you pay the interest as it builds, you'll reduce the total amount you'll need to repay later.

To qualify for this loan, you must meet certain requirements. These criteria ensure that you are eligible for federal aid and are enrolled in enough credits to maintain funding throughout your studies.

1. Complete a FAFSA.
2. Meet the eligibility requirements for federal programs.
3. Enroll in and attend a minimum of six credit hours each semester during the loan period.

How Much Can I Borrow?

You're considered a Dependent student if you were required to list parent information on the FAFSA.

You're considered a Second-Year student if you are enrolled in a two-year program and you have completed 30 or more credits.

The aggregate limit is the maximum total loan amount a student can borrow throughout their academic career, from the start of their college education until they graduate.

Loan Adjustments for Graduating Students

Federal rules require schools to adjust the Federal Direct Loan amounts for students who are graduating if they attend less than a full academic year (like just one semester). This means that if you're graduating in the fall semester, you won't be able to receive the full loan amount you would normally get for the entire year.

The adjusted loan amount is based on how many credits you have left to complete your degree. This determines the maximum loan amount you can receive in your final term.

Loan Disbursement and Refunds

Your loan funds will first be used to pay off any balance on your student account. If there’s any money left after that, it will be refunded to you. If your loan is for just one semester, you’ll receive the full loan in two disbursements within that semester.

Note: You can cancel all or part of your loan within 14 days after receiving the funds if you choose.

First-Time Borrowers Disbursement Requirements

Before first-time borrowers can get their loan funds, they must complete a Federal Direct Loan Master Promissory Note (MPN) and attend an Entrance Loan Counseling session.

Award Disbursement

You'll begin repaying your student loans six months after you drop below six credit hours or graduate.

For information about the servicer assigned to your loan, visit the Federal Student Aid website.

Repaying Your Student Loans