William D. Ford Federal Direct Loans (Direct Loans) are guaranteed federal student loan programs that include federal subsidized and unsubsidized loans and the federal PLUS (parent loan) programs. To apply for student loans, the student will complete and return the student aid loan application to financial aid. First-time borrowers must complete a loan entrance interview and sign a loan master promissory note. First-time borrowers must also wait 30 days after the beginning of the semester before funds are available.
- First Year Undergraduate, Dependent Student maximum eligibility for combined subsidized and unsubsidized loans is $5,500.
- First Year Undergraduate, Independent Student maximum eligibility for combined subsidized and unsubsidized loans is $7,500.
- Second Year Undergraduate, Dependent Student maximum eligibility for combined subsidized and unsubsidized loans is $6,500.
- Second Year Undergraduate, Independent Student maximum eligibility for combined subsidized and unsubsidized loans is $8,500.
- All students are eligible for $2,000 in an unsubsidized loan, which is in addition to the above amounts at each grade level.
- Direct Loans first disbursed on or after 10/1/20 and before 10/1/23 have a loan origination fee of 1.057%. Direct Loans first disbursed on or after July 1, 2022, and before July 1, 2023, have a fixed interest rate of 4.99%. Loan payments do not begin until six months cumulative after the student graduates or ceases to be enrolled, enrolls less than half time, or graduates.
* The maximum amounts may be awarded as a combination of subsidized and unsubsidized federal loans.
Dependent students whose parents are unable to borrow a Federal PLUS loan may borrow an additional $4,000 per year in unsubsidized loans. Students may pay the interest on the portion that is unsubsidized while in school and during any grace or in-school deferment periods, unless they elect to have the interest added to principal (capitalization). Having the interest capitalized will mean larger payments when repayment begins.
The Federal PLUS program allows parents of dependent undergraduates to borrow federal loan money to help pay the cost of their children’s college expenses. Eligible parents may borrow amounts not to exceed the difference between the student’s cost of attendance and all other financial aid the student will receive.
