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Undergraduate Federal Loans

Loans are another form of financial aid available to undergraduate students. Loans are different from grants and scholarships in that they must be repaid. Eligibility for the loans available may be determined by need and creditworthiness.

Federal Direct Loans

The following types of Direct Loans are available to eligible students:

  • Subsidized, for which the government pays the interest while students are in school.
  • Unsubsidized, for which students pay all the interest on the loan. Students may defer the interest while enrolled at least half-time. Students may receive both types of loans at the same time, if eligible.

 Annual Loan limits are as follows:

Subsidized and Unsubsidized Additional Unsubsidized Dependent Additional Unsubsidized Independent
Freshman $3,500 $2,000 $6,000
Sophomore $4,500 $2,000 $6,000
Junior $5,500 $2,000 $7,000
Senior $5,500 $2,000 $7,000

Aggregate Loan Limits for Federal Direct Loans

Undergraduate students may be eligible to borrow up to $31,000 of which no more than $23,000 may be in subsidized loans. Undergraduate Independent Students: $57,500 of which no more than $23,000 may be in subsidized loans. Interest rate information can be found here.

Federal Direct PLUS Loans for Parents

Federal Direct PLUS Loans are offered to the parents or stepparents of dependent students. Parent borrowers in this program may borrow up to the total cost of attendance minus other financial aid offered. To apply for the Parent PLUS loan, the parent must contact and apply directly with the U.S. Department of Education at StudentLoans.gov. A parent borrower’s credit record will be checked prior to the lender’s approval of the loan, and credit-worthy applicants will be required to complete a PLUS loan application and promissory note. Interest rate information can be found online.

A dependent applicant whose parents are denied the PLUS Loan by the lender will automatically be considered for an Unsubsidized Direct Stafford Loan.

See our Federal Direct Parent PLUS Loan process sheet for more information about applying for the PLUS.