Federal Direct Loans
How do I apply for this loan and am I eligible?
Your eligibility is determined by the information you provide on the FAFSA. Please note that students must meet federal eligibility requirements to qualify for these loans.
If you have received a financial aid notification letter from our office and a Federal Direct Unsubsidized Loan has already been awarded to you, and you are a first-time borrower, you may proceed to the U.S. Department of Education's website, to complete the Federal Direct Unsubsidized Loan Master Promissory Note and Entrance Counseling. You will need your FSA ID and password in order to log in to the website.
How much can I borrow?
You can borrow up to $20,500 in the Federal Direct Unsubsidized Loan for the academic year as a full-time student (12 credits or more per semester). Your annual limit will be prorated based on part-time enrollment (11 credits or fewer per semester). The Department of Education has not released further guidance or regulations on the proration calculations at this time, and we will update the information here when this is finalized.
You are responsible for the interest from the time the unsubsidized loan is disbursed until it is repaid in full. You can choose to pay the interest while you are in school or allow it to accrue (accumulate) and be capitalized (that is, added to the principal amount of your loan). Capitalizing the interest will increase the amount you will have to repay over the life of the loan.
Beginning July 1, 2026, the aggregate borrowing limit for the federal direct unsubsidized loan is $100,000 for a graduate degree program. The lifetime federal loan limit is $257,500 for all Federal Direct student loans (excluding Graduate or Parent PLUS loans) borrowed for all levels of study.*
* Current students may qualify for a limited exception for previous aggregate loan limits of $138,500 for a maximum of three years if they remain continuously enrolled in the same program of study at SUNY Potsdam that they were enrolled in as of June 30, 2026, and they had a direct loan disbursed for that same program before July 1, 2026.
View Loan Changes Summary for Graduate Students (PDF)
What is the interest rate and what fees are charged for this loan?
Interest rates for all federal loans are set by Congress.
When do I begin repaying the loan?
Repayment of Federal Direct Loans plus any accumulated interest begins six months (called the grace period) after you drop below half-time enrollment status. Normally, this occurs when you graduate or if you leave school for some other reason.
Federal Direct Graduate PLUS Loan
*Beginning July 1, 2026, the Graduate Plus loan program is eliminated for new students. Current students may qualify for a limited exception for a maximum of three years if they remain continuously enrolled in the same program of study at SUNY Potsdam that they were enrolled in as of June 30, 2026, and they had a direct loan disbursed for that same program before July 1, 2026.
How do I apply for this loan?
The Direct PLUS Loan for Graduate Students is only available for students working toward their Master's or other Professional Degree and you will be required to pass a credit check or secure an endorser (cosigner) for your loan.
You may contact our office at finaid@potsdam.edu if you need further details or if you are interested in these loans, and they are not part of your financial aid award package.
To apply:
- Select the option "Apply for a Grad PLUS Loan” under the tab “APPLY FOR AID”. A credit decision is provided immediately upon submission of the application.
- If your credit check expires before the loan is processed by the Financial Aid office, then a new credit check will be performed by the U.S. Department of Education. This may occur if the decision is based on a prior credit check; credit checks are valid for 180 days.
- Complete the Master Promissory Note for the Graduate/Professional Students on the same website, if this is your first time borrowing a PLUS Loan and your loan is approved. Select the “COMPLETE AID PROCESS” tab and then select “Complete Master Promissory Note.” Finally, make sure to select the “PLUS MPN for Graduate/Professional Students”, which is the second option in the list of MPN choices.
- The loan application, credit decision, and Master Promissory Note are sent to SUNY Potsdam electronically.
If your credit decision is denied, you have several options:
- Request an "appeal." If there are errors in your credit report, or extenuating circumstances exist relating to your adverse credit history, the parent borrower may choose to appeal. When you select "appeal decision", it will start the appeal process.
- Provide an endorser: The endorser must pass a credit check and sign a promissory note. An email with the Loan Reference ID will be emailed to the borrower. The endorser will need the Loan Reference ID to complete the Endorser Addendum online. The endorser must create a Federal PIN to sign in and go to "Endorse a PLUS Loan” under the “APPLY FOR AID” tab, or
- Not pursue the PLUS Loan: If you are not interested in the first two options, you can select the option not to pursue the Graduate PLUS Loan
What is the interest rate and what fees are charged for this loan?
Interest rates for all federal loans are set by Congress.
When do I begin repaying the loan?
Repayment begins 60 days after the loan is fully disbursed or you (the student) are no longer enrolled on at least a half-time basis (6 or more credit hours). For Fall/Spring loans, repayment would begin in mid-March.
Disbursement
Funds are normally disbursed in two equal installments and are credited directly to the student's account.
What options are available for students who need to borrow more than they are able through federal student loans?
Discuss other financing options with the financial aid office, such as scholarships, payment plans, or private loans.
Repayment Plan Changes
Students who borrow a new federal Direct Loan on or after July 1, 2026, will be eligible for only two repayment plans:
- Tiered Standard Repayment
- Fixed monthly payments
- Repayment term lengths range from 10 to 25 years, depending on the amount borrowed.
- Repayment Assistance Plan (RAP)
- Monthly payments based on income
- Loan forgiveness after 30 years of repayment
- Is a qualifying plan for Public Service Loan Forgiveness
*All federal loans must be repaid using the same repayment plan. Students with older loans (borrowed before July 1,2026) who take out new loans on or after that date will have to repay their loans under one of the two repayment options described above.
Students who do not borrow a new federal Direct Loan on or after July 1, 2026, may continue to access current repayment options, including:
- Standard (10-year), Graduated, or Extended Repayment
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)*
- Income-Contingent Repayment (ICR)*
* The law sunsets the PAYE and ICR plans effective July 1, 2028. Borrowers who enroll in PAYE or ICR must switch to any of the other eligible plans listed before July 1, 2028, or they will be automatically moved into RAP.
They may also access the new repayment options once they become available in July 2026:- Repayment Assistance Plan (RAP)
- Tiered Standard Repayment