Direct loans
Federal direct loans are one of the most common ways students pay for college. And with lower interest rates and flexible repayment options, they’re often the smartest choice.
Two types of direct student loans
Subsidized loans
Subsidized loans are available to undergraduate students who demonstrate financial need. The best part? You won’t be charged interest while you’re enrolled at least part-time (6+ credits).
Unsubsidized loans
Unsubsidized loans are available to all students, regardless of financial need. Interest begins accruing as soon as the loan is disbursed, even while you’re still in school.
Tools and resources to help you borrow wisely
Entrance counseling
Before your first federal loan is disbursed, you’ll complete entrance counseling and sign a Master Promissory Note (your agreement to repay what you borrow, plus interest).
Federal Student Aid
The Federal Student Aid website is your go-to source for loan details, repayment options, interest rates, and more.
Interest rates
Interest rates are set each year by Congress, so be sure to check the current rates before borrowing.
Loan repayment and consolidation
Once you graduate, leave school, or drop below part-time, repayment begins. Explore your repayment and consolidation options early to find a plan that fits your budget.
How much can I borrow?
Your annual loan limit depends on your year in school and whether you’re a dependent or independent student. If your dependency status or academic level changes mid-year, you might qualify for additional funding.
| Academic level | Dependent students | Independent students |
|---|---|---|
| First-year: <30 units completed | $5,500 Subsidized (Sub) and Unsubsidized (Unsub) $3,500 maximum Sub | $9,500 Subsidized (Sub) and Unsubsidized (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 |
| Student Type | 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 |