Federal Direct Loan

Federal Direct Loans are part of the William D. Ford Federal Direct Loan Program and are available to students regardless of demonstrated financial need.

Subsidized loans, awarded to students who demonstrate financial need, do not accrue interest during periods of at least half-time enrollment and deferments.

Federal Student Aid Time Limitation on Direct Subsidized Loan Eligibility for First-Time Borrowers

Unsubsidized loans accrue interest beginning at the time the loan is disbursed. Interest may be paid during periods of enrollment or may be capitalized and added to the principal amount of the loan when the loan enters repayment.

If you have questions about existing Federal loans, you can review your student loan history through the National Student Loan Data System (NSLDS).




Interest Rates

Grade Level Academic Year Loan Type Interest Rate*

Undergraduate Students (CAS)

2024-25 Subsidized & Unsubsidized 6.53% fixed
Graduate & Law Students 2024-25 Unsubsidized

8.08% fixed


*Interest rates for Academic Year 2023-24 have an interest rate of 5.50% fixed for undergraduates and 7.05% fixed for graduate and law students (Unsub only), for loans with a first disbursement date of July 1, 2023 but prior to June 30, 2024.

Loan Amounts

As of July 1, 2008, the maximum amount of Federal Direct Loan funds that a student may borrow for an academic year is as follows.

Dependent students whose parents can borrow Federal Direct PLUS Loan

Borrower’s Academic Level Base Amount Additional Unsubsidized
Freshman $3,500 $2,000
Sophomore $4,500 $2,000
Junior and Senior $5,500 $2,000

Dependent students whose parent cannot borrow Federal Direct PLUS Loan & all independent students

Borrower’s Academic Level Base Amount Additional Unsubsidized
Freshman $3,500 $6,000
Sophomore $4,500 $6,000
Junior and Senior $5,500 $7,000
Graduate & Law Students $0 $20,500

Fees and Disbursements

For all Direct Sub/Unsub loans for which the earliest disbursement date is on or after October 1, 2019 but before October 1, 2020, the origination fee is 1.059%.

For all Direct Sub/Unsub loans for which the earliest disbursement date is on or after October 1, 2020 but before October 1, 2023, the origination fee is 1.057%.

Be aware of loan fees when determining the net disbursement amount (principal minus fees).

Federal Direct Loan funds are divided evenly over your academic year. We will notify you when loan funds have been disbursed to your student account.


Process your Federal Direct Loans.

Returning loan funds to your lender

We will return loan funds if your written request is received within 14 days after the disbursement notification has been sent to you.

After this time, you can return Direct Loan funds by check to your servicer. For information about your servicer, please visit NSLDS.

To ensure that the payment is properly credited, you will need to include a cover letter stating whether the funds are for a loan payment or for canceling (inactivating) a loan. This note should indicate which loan(s) the returned funds should be applied to, and in what amounts (if repayment is split between loans).

A borrower has up to 120 days after the disbursement date to return Direct Loan funds without being responsible for paying fees and any accrued interest on the amount canceled.

Estimating your monthly loan payments

The minimum monthly payment is $50 and the standard repayment period is 10 years (120 payments). Other repayment options are available for students who meet the criteria and request their servicer modify their repayment plan. Additional details about repayment options and provisions for deferment and/or forbearance can be found on the “Repay Your Loans” section of the Department of Education website.

The following table is based on a standard 10-year repayment plan. Use this table to estimate the monthly payment amount for your Federal Direct Loan(s).

5.00% 6.00% 6.80% 7.50% 8.00%
3,500.00 50.00 50.00 50.00 50.00 50.00
4,500.00 50.00 50.00 51.79 53.42 54.60
5,500.00 58.34 61.06 63.29 65.29 66.73
8,500.00 90.16 94.37 97.82 100.90 103.13
12,000.00 127.28 133.22 138.10 142.44 145.59
16,000.00 169.70 177.63 184.13 189.92 194.12
20,500.00 217.43 227.59 235.91 243.34 248.72
25,000.00 265.16 277.55 287.70 296.75 303.32
30,000.00 318.20 333.06 345.24 356.11 363.98
35,000.00 371.23 388.57 402.78 415.46 424.65
45,000.00 477.29 499.59 517.86 534.16 545.97