Male student in class

Federal Direct Loans

Federal loans for students who qualify through the Free Application for Federal Student Aid (FAFSA).

As of July 1, 2019, this loan has a fixed interest rate as of 4.53% with a 1.062% fee which will be deducted from the proceeds that are sent to the school.

There are two types of Federal Direct loans:

  1. Subsidized loans neither require repayment nor accrue interest while you are enrolled at least half time.
  2. Unsubsidized loans can be deferred while in school, but interest accrues to the borrower and must either be paid or capitalized. The student does have the option to make interest-only payments while they attend college.

The Federal Direct Loan Program has counseling requirements. If you are a first-time borrower of the Federal Direct Loan you will be required to complete Direct Loan entrance counseling and a Master Promissory Note (MPN). You can do this online by visiting studentloans.gov. You will need your FSA ID (user name and password) to sign in.

Loan limits vary based on the loan type, dependency status, and year in college:

1st Year student

  • $3,500 subsidized loan limit
  • $5,500 total loan limit for dependent students
  • $9,500 total loan limit for independent students

2nd Year student

  • $4,500 subsidized loan limit
  • $6,500 total loan limit for dependent students
  • $10,500 total loan limit for independent students

3rd-5th Year student

  • $5,500 subsidized loan limit
  • $7,500 total loan limit for dependent students
  • $12,500 total loan limit for independent students

Exit counseling is required when you graduate, leave school, or drop below half-time enrollment. Exit counseling provides important information you need to prepare to repay your federal student loan(s). You’ll need to provide the name, address, e-mail address, and telephone number for your closest living relative, two references who live in the U.S., and current or expected employer (if known).

Other Loan Options