Federal Direct Subsidized and Unsubsidized Loans

Subsidized Loans: The federal government pays (subsidizes)  the interest during in-school periods. 

Unsubsidized Loans: Interest accrues during in-school and grace periods and is the borrower’s responsibility upon repayment.

Eligibility: Subsidized loans are need-based, while unsubsidized loans do not require financial need.

Interest Rate: Fixed at 6.39% for Direct Subsidized/Unsubsidized loans disbursed between July 1, 2025, and July 1, 2026.

Origination Fee: 1.057% for loans disbursed between October 1, 2020, and October 1, 2027.”

Repayment: No payments are required on Direct Subsidized/Unsubsidized loans until the in-school and grace periods end.

Eligibility Requirements

To qualify, you must:

• Be accepted and enrolled in a degree-granting program
• Maintain satisfactory academic progress
• Be enrolled at least half-time
• Have a valid FAFSA on file for the corresponding academic year
• Not be in default on any federal student loan

Application Process

Academic Year (Fall & Spring)

Undergraduate students are awarded their full Federal Direct Subsidized/Unsubsidized Loan eligibility upon completing the financial aid application process. To accept or decline your loans, visit the financial aid portal.

Summer

To receive a Direct Loan for summer, undergraduate students must complete the Summer Undergraduate Direct Loan Request Form. To request a Summer ‘25 loan, select the 24-25 award year in the top right corner before filling out the form.

Important: Summer ‘25 Direct Loan eligibility is calculated by subtracting the amount borrowed during the Fall 2024 and/or Spring 2025 terms from your annual loan limits.