Office of Scholarships and Financial Aid
Types of Financial Aid - Federal

Interest Rates and Loan Limits

Interest Rates

The Federal Direct Loan is a guaranteed student loan which may be subsidized, unsubsidized, or both. Click here for a complete table of the 2013-2014 federal Direct Loan interest rates.

Direct Subsidized Loan

  • The subsidized loan is a need-based loan. The federal government pays the interest on the subsidized loan while you are in school at least half-time (6 credits). Borrowers taking out subsidized loans disbursed between July 1, 2012 and June 30, 2014 will be responsible for any interest that accumulates during the six-month grace period.
  • You can borrow up to your financial need as determined by the federal financial aid formula or up to the program maximum, whichever is less.
  • Undergraduate students: The 2013-2014 subsidized fixed interest rate for undergraduate students is 3.86% with an 8.25% interest rate cap.
  • Graduate students: Under the Budget Control Act of 2011, effective for loans made for periods of enrollment beginning on or after July 1, 2012 subsidized loans are no longer available for graduate and professional students.
  • The origination fee for this loan is:
    1.051% for loans first disbursed on or after July 1, 2013 and prior to December 1, 2013.
    1.072% for loans first disbursed on or after December 1, 2013.

Direct Unsubsidized Loan

  • The unsubsidized loan is not based on need. Interest accrues beginning on the date of disbursement, during the in-school period, the grace period, and periods of repayment or deferment. The interest may be paid during the in-school period or deferred.
  • Deferring interest payments will capitalize interest (add your interest to the principal amount of the loan) and will increase the amount of your loan.
  • Undergraduate students: The 2013-2014 unsubsidized fixed interest rate for undergraduate students is 3.86% with an 8.25% interest rate cap.
  • Graduate students: The 2013-2014 unsubsidized fixed interest rate for graduate/professional students is 5.41% with a 9.50% interest rate cap.
  • The origination fee for this loan is:
    1.051% for loans first disbursed on or after July 1, 2013 and prior to December 1, 2013.
    1.072% for loans first disbursed on or after December 1, 2013.

Loan Limits

Direct Loan Limits per Grade Level Dependent Student Independent Student
Grade level 1 (0-29 semester credits completed) $5,500 $9,500
Grade level 2 (30-59 semester credits completed) $6,500 $10,500
Grade levels 3 or 4 and 5 (post-baccalaureate) $7,500 $12,500
Grade levels 6 or 7 (graduate student)   $20,500

The maximum aggregate Direct Loan limits are specified by federal law. Federal regulations also stipulate that a student cannot receive financial aid in excess of the cost of attendance. Therefore, some students are not able to borrow the full amounts listed.

  • Dependent Undergraduate: $31,000 (only $23,000 subsidized)
  • Independent Undergraduate: $57,500 (only $23,000 subsidized)
  • Graduate and Professional Students: $138,500

 

Return to the Loans Overview Page

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