Federal Direct Subsidized/UnsubsidizedStafford 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 Subsidized/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 website, to complete the Federal Direct Subsidized/Unsubsidized Loan Master Promissory Note and Entrance Counseling. You will need your FSA ID in order to log in to the website.
How much can I borrow?
Your eligibility is determined for a Federal Direct Subsidized and/or Unsubsidized Loan. A Federal Direct Subsidized Loan is awarded on the basis of financial need as determined by your FAFSA. If you are eligible for such a loan, the government will pay (subsidize) the interest on your loan while you are enrolled in school on at least a half-time basis. Depending on your federal eligibility, you may borrow a Federal Direct Subsidized Loan in an amount up to the annual loan borrowing limit for your level of study (see below).
You may also receive a Federal Direct Unsubsidized Loan. Unlike with a Federal Direct Subsidized loan, you are responsible for the interest on an Unsubsidized Loan from the time it 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.
You can receive both a Federal Direct Subsidized and Unsubsidized Loan as long as the combined amount of the two loans does not exceed the annual loan limit for a full-time student (12 credits or more per semester) for your class level, which can be viewed in BearDEN:
- At the freshman level, you can borrow up to $5,500 in combined Subsidized and Unsubsidized Loans, with a maximum of $3,500 as a Subsidized Loan (providing that you are eligible for Subsidized Loan assistance).
- At the sophomore level, you can borrow up to $6,500 in combined Subsidized and Unsubsidized Loans, with a maximum of $4,500 being as a Subsidized Loan (providing that you are eligible for Subsidized Loan assistance).
- At the junior or senior level, you can borrow up to $7,500 in combined Subsidized and Unsubsidized Loans, with a maximum of $5,500 being as a Subsidized Loan (providing that you are eligible for Subsidized Loan assistance).
- Class level changing? You may request additional loan funding when your class level changes after you receive an award notification. You must notify our office in writing or via email to indicate the amount you wish to request. You may borrow up to the annual amount as determined by your class level.
- Annual Loan Limit Prorated for Part-Time Students (11 credits or less per semester). Beginning July 1, 2026, the 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.
- The annual borrowing limits can be increased for students who meet the criteria to be considered independent for student financial aid purposes or whose parents have applied for and who were denied a Federal Direct PLUS Loan (see Federal Direct PLUS Loan information below). These students may be eligible for the following additional unsubsidized funds:
- $4,000 for freshmen/sophomores
- $5,000 for juniors/seniors
Aggregate borrowing limits are:
- For dependent undergraduate students — $31,000 (no more than $23,000 of this amount may be in subsidized loans);
- For independent students and dependent undergraduate students whose parents are unable to obtain PLUS Loans — $57,500 for undergraduates (no more than $23,000 of this amount may be in subsidized loans);
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 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.
enrollment status. Normally, this occurs when you graduate or if you leave school for some other reason.
Repayment 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