Federal Direct Subsidized/Unsubsidized Loans

A subsidized loan is offered based on your financial need. If you qualify, the federal government will cover the interest on your loan while you're in school.

An unsubsidized loan, however, is not based on need. If you qualify for an unsubsidized loan, interest will begin accumulating from the moment the loan is disbursed until it's paid off. You have the option to either pay the interest as it accrues or let it accumulate. If you allow the interest to accumulate, it will be added to the principal loan amount, which means you'll end up paying more over time. However, if you pay the interest as it builds, you'll reduce the total amount you'll need to repay later.

To qualify for this loan, you must meet certain requirements. These criteria ensure that you are eligible for federal aid and are enrolled in enough credits to maintain funding throughout your studies.

1. Complete a FAFSA.
2. Meet the eligibility requirements for federal programs.
3. Enroll in and attend a minimum of six credit hours each semester during the loan period.

How Much Can I Borrow?

You're considered a Dependent student if you were required to list parent information on the FAFSA.

You're considered a Second-Year student if you are enrolled in a two-year program and you have completed 30 or more credits.

The aggregate limit is the maximum total loan amount a student can borrow throughout their academic career, from the start of their college education until they graduate. See the table above for aggregate loan limits.

Starting July 1, 2026, the Lifetime Aggregate Limit a student can borrow in Federal student loans is $257,500. This is regardless of amounts repaid, forgiven, canceled or otherwise discharged.

Loan Adjustments for Graduating Students

Federal rules require schools to adjust the Federal Direct Loan amounts for students who are graduating if they attend less than a full academic year (like just one semester). This means that if you're graduating in the fall semester, you won't be able to receive the full loan amount you would normally get for the entire year.

The adjusted loan amount is based on how many credits you have left to complete your degree. This determines the maximum loan amount you can receive in your final term.

Loan Disbursement and Refunds

Your loan funds will first be used to pay off any balance on your student account. If there's any money left after that, it will be refunded to you. If your loan is for just one semester, you'll receive the full loan in two disbursements within that semester.

Note: You can cancel all or part of your loan within 14 days after receiving the funds if you choose.

First-Time Borrowers Disbursement Requirements

Before first-time borrowers can get their loan funds, they must complete a Federal Direct Loan Master Promissory Note (MPN) and attend an Entrance Loan Counseling session.

Award Disbursement

You'll begin repaying your student loans six months after you drop below six credit hours or graduate.

For information about the servicer assigned to your loan, visit the Federal Student Aid website.

Repaying Your Student Loans

Your Federal Direct Loan amount is based on how many credit hours you take.

• Full-time for one semester: Enroll in at least 12 credit hours during the fall, spring, or summer semester.
• Full-time for fall and spring semesters: Enroll in at least 24 credit hours during the fall and spring semesters, usually 12 credits in the fall and 12 credits in the spring.
• Full-time for fall, spring, and summer semesters: If your program requires summer enrollment, you must complete at least 36 credit hours during the fall, spring, and summer semesters.
• Half-time: Enroll in at least 6 credit hours in a semester.

If you start the semester as a full-time student but later drop below full-time, your loan may be affected.

Your loan amount is based on the number of credit hours you're enrolled in up to the time your loan is disbursed. Financial aid lock dates do not apply to the Schedule of Reduction (SOR).

Once your loan has been disbursed, the amount you received for that semester will not change because of the SOR. If you add, drop, or withdraw from classes after your loan is disbursed, your loan for that semester will stay the same.

However, if you drop or withdraw from classes after your loan is disbursed and are enrolled in fewer credit hours, your loan amount may be reduced for a future semester.

The Schedule of Reduction (SOR) is calculated before your loan is disbursed for each semester.

• Spring semester: Your SOR is reviewed once spring registration begins.
• Summer semester: Your SOR is reviewed beginning in mid-April. See Applying for Financial Aid and Your Award, Taking Summer Classes? for more information about summer financial aid awards.

If you graduate after one semester of the academic year, different federal loan proration rules apply. The Schedule of Reduction (SOR) does not apply to your loan.

We'll review your enrollment and let you know if your loan amount needs to change.

Your loan amount is based on the number of credit hours you're enrolled in for the academic year.

• Single semester loan: Credit hours you're enrolled in for the semester ÷ 12 x 100 = the pecentage of your loan you're eligible to receive.
  • Use this formula if you're accepting a loan for one semester only or you're starting your program in the spring.
• Fall and spring enrollment: Credit hours you're enrolled in for the academic year (fall + spring) ÷ 24 × 100 = the percentage of your annual loan you're eligible to receive.
• Fall, spring, and summer enrollment: Credit hours you're enrolled in for the academic year (fall + spring + summer) ÷ 36 × 100 = the percentage of your annual loan you're eligible to receive.
  • Use this formula if your program requires summer enrollment. If you're taking summer classes but summer is not required for your program, use the Fall and Spring Enrollment formula instead.

If the Schedule of Reduction (SOR) applies to your loan, the reduced annual loan limit percentage is applied to the maximum annual loan amount you are eligible to receive.

Your reduced loan amount for the academic year is then divided between the fall and spring semesters based on the number of credit hours you take each semester.

Step 1: Calculate your annual loan amount

Maximum annual loan amount × Your annual loan limit percentage = Maximum loan amount you can receive for the academic year

Step 2: Divide your loan amount between fall and spring

• Fall semester: Fall credit hours ÷ Total academic year credit hours × Maximum academic year loan amount = Fall loan amount
• Spring semester: Spring credit hours ÷ Total academic year credit hours × Maximum academic year loan amount = Spring loan amount

Example

You are enrolled in 9 credits in the fall semester and plan to take 12 credits in the spring semester. You are eligible for a $5,500 Federal Direct Unsubsidized Loan. Full-time enrollment for the academic year is 24 credits.

Step 1: Calculate your annual loan limit percentage

(9 + 12) ÷ 24 × 100 = 88% reduced annual loan limit percentage

Step 2: Calculate your maximum loan amount for the academic year

$5,500 × 88% = $4,840 maximum loan amount for the academic year

Step 3: Divide the loan amount between fall and spring semesters

• Fall semester: 9 ÷ (9 + 12) × $4,840 = $2,074
• Spring semester: 12 ÷ (9 + 12) × $4,840 = $2,766

If you only take a Federal Direct Loan for one semester, your loan amount may be reduced based on the number of credit hours you are enrolled in for that semester.

Step 1: Calculate your annual loan limit percentage

Credit hours you're enrolled in for the semester ÷ 12 (full-time credit hours) × 100 = Your annual loan limit percentage.

Step 2: Calculate your maximum loan amount for the semester

Half of your maximum annual loan eligibility × Your annual loan limit percentage = Maximum loan amount you can receive for the semester.

Example

You're enrolled in 9 credits for the fall semester and choose to only take a loan for fall. You're eligible for a $5,500 Federal Direct Unsubsidized Loan for the academic year, but because you only plan to take a loan for one semester, you can receive up to $2,750 for that semester. Full-time enrollment for one semester is 12 credits.

Step 1: Calculate your annual loan limit percentage

9 ÷ 12 × 100 = 75% your annual loan limit percentage

Step 2: Calculate your maximum loan amount for the semester

$2,750 × 75% = $2,063 maximum loan amount for the semester

Your fall loan amount would be reduced based on your enrollment level.

If your program requires you to attend during the summer and your loan covers the fall, spring, and summer semesters, your loan amount is based on your total credit hours for the academic year.

Step 1: Calculate your annual loan limit percentage

Credit hours you're enrolled in for the academic year (fall + spring + summer) ÷ 36 (full-time credit hours) × 100 = Your annual loan limit percentage

Step 2: Calculate your maximum loan amount for the academic year

Maximum annual loan eligibility × Your annual loan limit percentage = Maximum loan amount you can receive for the academic year

Your total loan amount for the academic year is then divided between the fall, spring, and summer semesters based on the number of credits you take each semester.

Step 3: Divide your loan amount between each semester

• Fall semester: Fall credit hours ÷ Total academic year credit hours × Maximum academic year loan amount = Fall loan amount
• Spring semester: Spring credit hours ÷ Total academic year credit hours × Maximum academic year loan amount = Spring loan amount
• Summer semester: Summer credit hours ÷ Total academic year credit hours × Maximum academic year loan amount = Summer loan amount

Example

You're enrolled in 9 credits in the fall, 12 credits in the spring, and 6 credits in the summer. You're eligible for a $5,500 Federal Direct Unsubsidized Loan for the academic year. Full-time enrollment for a program that requires summer enrollment is 36 credits.

Step 1: Calculate your annual loan limit percentage

(9 + 12 + 6) ÷ 36 × 100 = 75% reduced annual loan limit percentage

Step 2: Calculate your maximum loan amount for the academic year

$5,500 × 75% = $4,125 maximum loan amount for the academic year

Step 3: Divide the loan amount between fall, spring, and summer

• Fall semester: 9 ÷ (9 + 12 + 6) × $4,125 = $1,375
• Spring semester: 12 ÷ (9 + 12 + 6) × $4,125 = $1,833
• Summer semester: 6 ÷ (9 + 12 + 6) × $4,125 = $917

Your total loan amount for the academic year would be $4,125, divided between each semester based on your enrollment.