All Federal Subsidized and Unsubsidized Direct Loans are borrowed through the Federal Direct Lending program. If you are a new or returning student, you will have to complete the following to receive a Federal Direct loan or PLUS loan:
Additional Information
1 (800) 557-7394 (8 a.m. - 8 p.m. EST, Monday thru Friday)
Annual Limits for Subsidized/Unsubsidized Loans
Dependent Undergraduate (excluding dependent students whose parents can't get PLUS)
| Subsidized | Total (subsidized & unsubsidized) | |
|---|---|---|
| Freshman (0 - 29 credits) | $3,500 | $5,500 |
| Sophomore (30 - 59 credits) | $4,500 | $6,500 |
| Junior/Senior (60+ credits) | $5,500 | $7,500 |
Independent Undergraduates & Dependent Students whose parents can't get PLUS
| Subsidized | Total (subsidized & unsubsidized) | |
|---|---|---|
| Freshman (0 - 29 credits) | $3,500 | $9,500 |
| Sophomore (30 - 59 credits) | $4,500 | $10,500 |
| Junior/Senior (60+ credits) | $5,500 | $12,500 |
Graduate & Professional Students
| Subsidized | Total (subsidized & unsubsidized) | |
|---|---|---|
| All years | $0 | $20,500 |
Under the Federal Direct Loan program, we are forced to define our Academic Year as Fall, Spring, and Summer semesters. Therefore, Federal Direct Loans are limited to an academic year (defined as Fall, Spring, and Summer terms) maximum based on a student's grade level listed above. If a student has utilized the maximum Direct Loan during the preceding Fall and Spring, the student will not be eligible for a Summer Direct Loan. If the student did not, they will be eligible for the remaining amount of the above limits.
Federal Direct PLUS loans
There are no set limits for Direct PLUS Loans, but you may not borrow more than the cost of education minus any other financial aid received.
150% Direct Subsidized Loan Limit Information
Background:
On May 16,2013, the government added a new provision to the Direct Loan requirements.
The new requirement limits a first-time borrower's eligibility for Direct Subsidized
Loan to a period not to exceed 150% of the length of the borrower's educational program.
Under certain conditions, the provision also causes first-time borrowers who have exceeded their 150% limit to lose the interest subsidy on their Direct Subsidized Loans.
Who is impacted?
This new limit applies only to first-time Direct Subsidized loan borrowers on or after
July 1, 2013. If you borrowed a Direct Subsidized Loan that was disbursed to your
student account before this date, you are not subject to the new limit.
If you are impacted by the new limit:
- You will only be able to borrow Direct Subsidized Loans for 150% of the length of
your academic program. The length of your academic program is determined by how long
it would take a full-time student to complete the program in years.
- Example #1: You are enrolled in a bachelor's degree program and attending full-time. Your program takes 4 years to complete as a full-time student. Your "Maximum Eligibility Period" for subsidized loans is 6 years (150% of 4 years = 6 years). If you are unable to complete your program in 4 years while attending full-time, you are eligible to continue to borrow Direct Subsidized Loans up to a maximum of 6 years.
- Example #2: You are enrolled in a bachelor's degree program and attending full-time. Your program takes 5 years to complete as a full-time student. Your "Maximum Eligibility Period" for subsidized loans is 7.5 years (150% of 5 years = 7.5 years). If you are unable to complete your program in 5 years while attending full-time, you are eligible to continue to borrow Direct Subsidized Loans up to a maximum of 7.5 years.
- Example #3: You are enrolled in a bachelor's degree program and attending part-time. Your program takes 4 years to complete as a full-time student. Your "Maximum Eligibility Period" for Subsidized Loan is 6 years. However, since you are not enrolled full-time, your calculated "Subsidized Usage Period" will be less than that of a full-time student as you borrow subsidized loans. Therefore, you will not use up your eligibility as fast as a full-time student would.
What happens if I exceed my limit?
If you exceed your Maximum Eligibility Period you are still eligible to borrow from
the Direct Loan program. However, you will not be eligible for any future subsidized
loans. You would only be eligible for unsubsidized loans. Also, your prior subsidized
loan borrowing will be converted to unsubsidized, and you will be responsible for
the interest on your loans (which was previously subsidized by the government).
Graduate Students:
As a graduate student, you are not eligible for Direct Subsidized Loans. Graduate
students are only eligible for unsubsidized loans. Graduate students who are new borrowers
as of July 1, 2013 are therefore not subject to this new limit since you are not eligible
for Direct Subsidized Loans.
If you have any questions about the new subsidized loan limit provision, please contact us. We will help to answer your specific questions and can verify your remaining eligibility if applicable.