Federal Direct Loans are available to eligible undergraduate and graduate borrowers.
- Students must complete the Free Application for Federal Student Aid (FAFSA) and eligibility is determined based on the cost of attendance, less other aid the student is receiving.
- Subsidized loans do not accrue interest while the student is enrolled at least half-time and during eligible periods of deferment or forbearance.
- Unsubsidized loans begin to accrue interest when the loan is disbursed to the student’s account.
- Students must be enrolled at least half-time in order to be eligible. Half-time for an undergraduate student is six semester hours; and five hours for a graduate or professional student.
- Repayment is deferred as long as the student is enrolled at least half-time. After a student ceases to be enrolled at least half-time, a six-month grace period begins. Repayment begins at the end of the six-month grace period.
- The interest rate is a fixed rate for the life of the loan and caps at 8.25%.
- A variety of repayment plans are available. The standard repayment period is 10 years, but may extend to as much as a 30-year period. Find more information on repayment plans at Repayment Plans | Federal Student Aid Opens link in new window..
There are annual and lifetime limits that apply to undergraduate and graduate borrowers. Most undergraduate borrowers qualify for a combination of subsidized and unsubsidized loans. Subsidized loans are not available for graduate or professional students. Because eligibility is based on cost of attendance minus other aid the student is receiving, a student may not qualify for the annual maximum loan amount each year.
Loan Adjustments for Less-Than-Full-Time Enrollment
Students who enroll full-time and remain enrolled full-time are eligible to receive the full-time annual loan amount(s) which are divided equally between the semesters of the academic year.
Students who enroll less-than-full-time, or drop below full-time, will now have their federal student loans reduced in direct proportion to their less-than-full-time status. If full-time is 24 credit hours and a student enrolls for 18 credit hours for the academic year, the student will receive 75% of their annual loan limit eligibility (18/24 = 75%)
Federal student loans that will be affected by the new loan reduction requirements:
- Federal Subsidized Loans (undergraduate)
- Federal Unsubsidized Loans (undergraduate and graduate)
- Federal Graduate PLUS Loans (graduate – eligible under legacy provisions)
(Federal Parent PLUS Loans are not subject to reduction for less than full-time enrollment.)
Each loan will be reduced separately according to the student’s less-than-full-time enrollment status.
Annual Federal Direct Loan Limits
Maximum Annual Award for Dependent Student
| Classification | Maximum Annual Award for Dependent Student |
|---|---|
| Freshman | $5,500 |
| Sophomore | $6,500 |
| Junior/Senior | $7,500 |
Maximum Annual Award for Independent Student
| Classification | Maximum Annual Award for Independent Student |
|---|---|
| Freshman | $9,500 |
| Sophomore | $10,500 |
| Junior/Senior | $12,500 |
| Graduate | $20,500 |
| Medical, Dental, Optometry | *$50,000 |
*Limit varies, based on length of academic year and limited exception period.
Aggregate Federal Direct Loan Limits
| Classification | Subsidized Limit | Total Aggregate Limit (includes subsidized and unsubsidized loans) |
|---|---|---|
| Dependent undergraduate | $23,000 | $31,000 |
| Independent undergraduate | $23,000 | $57,500 |
| Graduate student | $65,500 | *$100,000 |
| Medical, Dental, Optometry | $65,500 | **$200,000 |
*Does not include subsidized and unsubsidized loans.
**Includes graduate level loans but does not include subsidized and unsubsidized loans.
Lifetime Federal Loan Limit
The total lifetime federal loan limit is $257,500 and includes graduate plus loans, subsidized, and unsubsidized loans at all levels. (Excludes Parent PLUS loans)
Limited Exception: Students are not subject to the new loan limits (for up to three academic years or the remainder of their expected time to credential, whichever is less) if they remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026 and they had a Direct Loan disbursed for that same program before July 1, 2026.
More information about federal loans can be found at Loans | Federal Student Aid Opens link in new window..
One Big Beautiful Bill Act Updates | Federal Student Aid Opens link in new window.