Federal Direct Loans
Federal Loan Program
Federal Direct Loans are for undergraduate, graduate and professional degree students, enrolled at least half time, who meet the general requirements to receive federal aid. The William D. Ford Federal Direct Loan Program is the largest federal student loan program. Under this program, the U.S. Department of Education is your lender.
Federal Direct Subsidized Loan
Details
- For undergraduate students who are enrolled at least half time and demonstrate financial need
- Interest is 4.99% for loans made between 7/1/2022 and 7/1/2023
- Student is not charged interest on the loan while in school and during deferment periods
- The U.S. Department of Education (ED) is the lender; payment is owed to ED
Limit
- Between $3,500 and $5,500 depending on year in school
Fees
- 1.057% - On or after 10/1/2021 and before 10/1/2023
Federal Direct Unsubsidized Loan
Details
- For undergraduate and graduate students who are enrolled at least half time
- Interest is 4.99% for undergraduate and 6.54% for graduate loans made between 7/1/2022 and 7/1/2023
- Student is responsible for interest during all periods
- The U.S. Department of Education (ED) is the lender; payment is owed to ED
Limit
- Between $5,500 to $20,500 (minus any subsidized amount received for the same period) depending on year in school and dependency status
Fees
- 1.057% - On or after 10/1/2021 and before 10/1/2023
Federal Direct PLUS Loan for Parents
Details
- For parents of dependent students
- Dependent students must be enrolled at least half time
- Interest is 7.54% for loans made between 7/1/2022 and 7/1/2023
- Parent must not have negative credit history
- Parent is responsible for interest during all periods
- The U.S. Department of Education (ED) is the lender; payment is owed to ED
Limit
- Maximum amount is cost of attendance* minus any other financial aid the student receives
Fees
- 4.228% - On or after 10/1/2021 and before 10/1/2023
Federal Direct PLUS Loan for Graduate or Professional Students
Details
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For graduate or professional degree students who are enrolled at least half time
- If the student has not requested the annual maximum Unsubsidized Stafford Loan amount they are eligible for, the school must notify the student of this eligibility and give them the opportunity to request it
- Student must not have negative credit history
- Interest is 7.54% for loans made between 7/1/2022 and 7/1/2023
- Student is responsible for interest during all periods
- The U.S. Department of Education (ED) is the lender; payment is owed to ED
Limit
- Maximum amount is cost of attendance* minus any other financial aid the student receives
Fees
- 4.228% - On or after 10/1/2021 and before 10/1/2023
The annual maximum amount may be awarded to you as a combination of subsidized and unsubsidized. You must pay the interest on the portion that is unsubsidized while in school, and during any grace or in-school deferment periods, unless you elect to have the interest added to the principal. This is called capitalization. Having the interest capitalized will mean larger payments when you begin repayment.
Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You're responsible for repaying the entire amount you borrowed and not just the amount you received.
The Biden-Harris Administration's Student Debt Relief Plan Explained
What the program means for you, and what comes next
President Biden, Vice President Harris, and the U.S. Department of Education have announced a three-part plan to help working and middle-class federal student loan borrowers transition back to regular payment as pandemic-related support expires.
This plan includes loan forgiveness of up to $20,000. Many borrowers and families may be asking themselves “what do I have to do to claim this relief?” This link will provide answers to those questions and more: .
There will be more details announced in the near future. To be notified when the process has officially opened, sign up at the .
You'll have until Dec. 31, 2023 to apply.