Loans

Subsidized Direct loans, available through the federal government, do not accrue interest or require repayment until after the student is no longer enrolled in school on a half time basis. To receive a subsidized loan, the student must complete the Free Application for Federal Student Aid (FAFSA), be an undergraduate, degree seeking student, and be eligible for need based aid.

The interest rate on your Direct Subsidized Loan is fixed, and you will not be charged interest while you are enrolled in school at least half time, during your 6-month grace period, or during deferments. You will begin repaying your loan six months after you graduate, leave school, or drop below half-time. The monthly payment and actual length of the repayment period depends on the amount of the loan you owe, your interest rate, and the loan repayment option you chose. While there is no interest on the Direct Subsidized Loan while you are in school, there is an origination fee.

There are limits to the amount of Subsidized Direct Loan you may borrow annually depending on your grade level, as well as a cumulative undergraduate borrowing amount. 

First year students may receive up to $3,500 annually, students with a Sophomore standing receive up to $4,500 annually, and students with a Junior or higher status receive up to $5,500 annually. Enrolling less than full time could result in receiving less than the yearly loan maximum. 

The cumulative limit undergraduates may receive is $23,000.

Unsubsidized or interest bearing loans do not require financial need (although most require that a FAFSA be filed). Unlike subsidized loans, unsubsidized loans accrue interest while the student is in school. Interest begins on the day the Unsubsidized Direct Loan disburses to a student's account. Payments of principal may be delayed until the student is no longer enrolled in school on a half time basis. Undergraduate and Graduate degree seeking students are eligible for Unsubsidized Direct Loans.

Interest begins to accumulate on an Unsubsidized Direct Loan once the loan is disbursed, even while you are in school. The interest begins the day the loan is paid to you until the day the loan is repaid in full. The interest rate is a fixed rate and will not change. Your Loan servicer will send you a statement of accrued interest periodically. You may choose to pay the accumulating interest while you are in school, or have the interest capitalized. Capitalizing means adding unpaid, accumulated interest to the principal balance of the loan. Capitalization increases the total cost of your loan, so if you choose to let your interest be capitalized, you will repay more money in total than if you pay it while you are in school. In addition to interest, there is also an origination fee of 1.057% deducted from your loan when it is disbursed. 

There are limits to the amount you may borrow annually depending on your grade level, as well as a cumulative undergraduate borrowing amount. Enrolling less than full time could result in receiving less than the yearly loan maximum.

Dependent undergraduate students can borrow:

• Freshman – $5,500 (up to $3,500 may be subsidized);
• Sophomore – $6,500 (up to $4,500 may be Subsidized);
• Junior+ – $7,500 (up to $5,500 may be Subsidized);
• Aggregate/Cumulative – $31,000 (up to $23,000 may be Subsidized).

Independent undergraduate students can borrow:

• Freshman – $9,500 (up to $3,500 may be Subsidized);
• Sophomore – $10,500 (up to $4,500 may be Subsidized);
• Junior+ – $12,500 (up to $5,500 may be Subsidized);
• Aggregate/Cumulative – $57,500 (up to $23,000 may be Subsidized).

Graduate degree seeking students can borrow:

• Up to $20,500 annually
• Aggregate/Cumulative - $138,500 - this includes loans borrowed at the undergraduate level
• Beginning July 1, 2026 graduate students remain eligible to borrow up to $20,500 annually, however, the aggregate loan limit will change to $100,000. Additionally, there will be a lifetime limit (which includes all student borrowed loans) of $257,000.

In order to receive your first Federal Direct Loan, federal law requires that you complete Loan Entrance Counseling to ensure that you have a full understanding of the rights and responsibilities you will incur before accepting a loan. After accepting your Federal Direct Loan we will email you instructions to complete Loan Entrance Counseling. 

Additionally, first time Federal Direct Loan borrowers must sign a Master Promissory Note (MPN) online in order to receive a loan. The Master Promissory Note is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s). After accepting your Federal Direct Loan we will email you instructions to complete the MPN.

Federal law requires that borrowers of Federal Direct Ford, Stafford, or SLS student loans receive Loan Exit Counseling information prior to graduation, dropping below half time enrollment, or leaving school. Students must complete this requirement on the Federal Student Aid web site.