Direct Subsidized/Unsubsidized Loans

Federal Direct Subsidized/Unsubsidized Loans

Students are considered for Federal Direct Loans once they've completed the FAFSA. These loans are in the student’s name and must be repaid with interest.

Federal Direct Subsidized Loan (Need-based)

Subsidized loans are only offered to undergraduate students with demonstrated financial need as calculated from their FAFSA information, and who are enrolled at least half-time. The Department of Education pays interest that accrues while the student is enrolled at least half-time or is in deferment status.

Federal Direct Unsubsidized Loan (Non-need-based)

Unsubsidized loans are offered to both undergraduate and graduate students who are enrolled at least half-time. Interest accrues when the loan is disbursed. Students are encouraged, but not required, to make payments while attending NAU.

If you are a first-time Federal Direct Loan borrower you must complete Entrance Counseling and sign a Master Promissory note (MPN).

Annual and lifetime loan limits are based on your academic level and dependency status. 

Academic Level 

Dependent Students 

Independent Students  

Freshman - < 30 units completed 

$5,500 Sub and Unsub

$3,500 maximum Sub

$9,500 Sub and Unsub

$3,500 maximum Sub

Sophomore - between 30 and 59 units completed 

$6,500 Sub and Unsub

$4,500 maximum Sub

$10,500 Sub and Unsub

$4,500 maximum Sub

Junior / Senior - 60 units and above completed 

$7,500 Sub and Unsub

$5,500 maximum Sub

$12,500 Sub and Unsub

$5,500 maximum Sub

Second Degree or Teacher Certification 

$7,500 Sub and Unsub

$5,500 maximum Sub

$12,500 Sub and Unsub

$5,500 maximum Sub

Graduate or Professional 

Not Eligible

$20,500 Unsub only 

 

Lifetime Loan Limits - Effective 7/1/2008 

Dependent Undergraduate 

$31,000 (Sub and Unsub) - $23,000 maximum Sub

Independent Undergraduate 

$57,500 (Sub and Unsub) - $23,000 maximum Sub

Graduate or Professional 

$138,500 (Sub and Unsub) - $65,500 

Interest rates are set by Congress each year.

For more information on Federal Direct Subsidized and Unsubsidized loans, visit studentaid.ed.gov