Subsidized Unsubsidized Loans

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Subsidized and unsubsidized loans

Federal Subsidized Direct Loan

Available to undergraduate students. To be eligible, students must complete the Free Application for Federal Student Aid (FAFSA) and show financial need. The loan is interest free as long as student is enrolled at least half time. Repayment at a fixed interest rate of 3.86% for loans disbursed after July 1, 2013. A 1.072% Origination Fee will be deducted from each semester's loan amount.

The interest subsidy during the six month grace period is eliminated for new Direct Loans made on or after July 1, 2012 and before July 2, 2014. The repayment period still begins 6 months after the student is no longer enrolled at least half-time, but interest will accrue during those 6 months of grace period, and will be payable by the borrower rather than subsidized by the federal government.

The maximum amount students may borrow is:

  • Freshman (0-29 credits) $3,500 per year
  • Sophomore (30-59 credits) $4,500 per year
  • Junior/Senior (60+ credits) $5,500 per year

Federal Unsubsidized Direct Loan

Available to undergraduate and graduate students. This loan is not based on need. However, the student must complete the FAFSA. Effective July 1, 2013 the interest on this loan is 3.86% for undergraduate students and 5.41% for graduate students.  The student is responsible for the interest while in school. A 1.072% Origination Fee will be deducted from each semester's loan amount.

Academic year borrowing limits

Dependent Students 

Time frame Subsidized Amount Limit Additional Unsubidized  Total Annual Maximum (subsidized + unsubsidized)
Freshman (1 - 29 credits) $3,500 $2,000 $5,500
Sophomore (30 - 59 credits) $4,500 $2,000 $6,500
Junior/Senior (60+ credits) $5,500 $2,000 $7,500
Aggregate Borrowing Limit     $31,000 (no more than $23,000 can be subsidized)

Independent Students

Time frame Subsidized Amount Limit Total Annual Maximum (subsidized + unsubsidized)
Freshman (1 - 29 credits) $3,500 $9,500
Sophomore (30 - 59 credits) $4,500 $10,500
Junior/Senior (60+ credits) $5,500 $12,500
Aggregate Borrowing Limit   $57,500 (no more than $23,000 can be subsidized)

Graduate Students

Time Frame Total Annual Maximum: subsidized + unsubsidized
Every Year $20,500
Aggregate Borrowing Limit $138,500 (no more than $65,500 can be subsidized)

 

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