Office of Scholarships and Financial Aid
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  • Direct Subsidized/Unsubsidized Loans

Direct Subsidized/Unsubsidized Loans

What’s the difference between Direct Subsidized and Unsubsidized Loans?

  • Direct Subsidized Loans have slightly better terms to help out students with financial need.
    • Direct Subsidized Loans are available to undergraduate students with financial need.
    • The U.S. Department of Education pays the interest on a Direct Subsidized Loan while you’re in school at least half-time.
  • Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need.
    • You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.
    • If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue and be capitalized.

 

First-time Federal Direct Loan borrowers

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

  • Interest rates are set by Congress each year.
  • Loan Repayment and Consolidation
  • Annual and lifetime loan limits are based on your academic level and dependency status:

Loan Limits

Annual and lifetime loan limits are based on your academic level and dependency status. If either change during the academic year, you may be eligible for additional loan funding. Contact our office to discuss your options.

Academic LevelDependent
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
Undergraduate Second Degree or Teacher Certification
$7,500 Sub and Unsub
$5,500 maximum Sub
$12,500 Sub and Unsub
$5,500 maximum Sub
Graduate Degree or Teacher Certification
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 (maximum Sub)

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

https://nau.studentadvisor.ai/virtualadvisor
Virtual Advisor
Office of Scholarships and Financial Aid
Location
Building 1
Gammage
601 S. Knoles Dr.
Flagstaff, AZ 86011
Mailing Address
PO Box: 4108
Flagstaff, AZ 86011
Contact Form
Email
Financial.Aid@nau.edu
Phone
928-523-4951
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