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