Direct Subsidized Loan

Direct Subsidized Loan

The Direct Subsidized Loan is available to undergraduate students (Technical Certificate, Associate Degree, and Bachelor’s Degree) who demonstrate financial need. The institution determines the amount a student may borrow based on their academic year or enrollment intensity, and the amount may not exceed the student's calculated financial need. The U.S. Department of Education pays (subsidizes) the interest on the loan while the borrower remains enrolled at least half-time, during the grace period, and during periods of authorized deferment.

The maximum annual loan amount that an undergraduate student may receive must be prorated (reduced) when the borrower:

• Is enrolled in less than a full-time academic workload for a semester (12 undergraduate credits or 3 graduate/professional credits).
• Is enrolled in a program that is shorter than a full academic year.
• Is enrolled in a program that is one academic year or longer but is in a period of study during which the student will complete all program requirements in less than a full academic year.

Direct Unsubsidized Loan

The Direct Unsubsidized Loan is available to undergraduate and graduate/professional students (Master’s and Doctoral levels) and does not require the student to demonstrate financial need. The Direct Unsubsidized Loan is awarded at the student’s request. The amount awarded is based on the student’s grade level or enrollment intensity for the academic year, as well as the student’s dependency status (dependent or independent), and may not exceed the cost of attendance. The student is responsible for paying the interest on a Direct Unsubsidized Loan from the time the loan is disbursed. If the student chooses not to pay the interest while enrolled in school, during the grace period, or during periods of deferment or forbearance, the interest will accrue and be capitalized, meaning it will be added to the principal balance of the loan.

Effective July 1, 2026, the U.S. Department of Education defines students enrolled at the graduate academic level within the following categories:

• Graduate Students
  A graduate student is a student enrolled in a program of study beyond the undergraduate level that leads to a graduate credential (master’s degree or doctorate) upon completion of the program.
• Professional Students
  A professional graduate student is a student enrolled in a program leading to a professional degree (doctoral level) that requires a professional license in order to practice the profession.

For additional information and details, you may access the Federal Student Aid platform through the following links:

• https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized 
• https://studentaid.gov/understand-aid/types/loans/interest-rates 

Direct PLUS Loans

The U.S. Department of Education offers Parent PLUS Loans to parents of dependent students and Graduate PLUS Loans to graduate students to help cover educational expenses not covered by other financial aid. The loan amount may not exceed the student's cost of attendance. Parent PLUS Loans are the financial responsibility of the parent borrower, not the student, and cannot be transferred to the student after the student completes their studies. Additional information about both loan programs is provided below:

Direct PLUS Loans for Graduate or Professional Students

Students with loan disbursements made before July 1, 2026, who remain enrolled at the institution in the same academic program and have received a loan disbursement, will be subject to the temporary exception limits established under the One Big Beautiful Bill Act (OBBBA). To remain eligible under the temporary exception, the student must maintain this status for at least three years or for the duration of the academic program, whichever applies. A student may lose eligibility for the exception if they, change academic programs, transfer to another institution, withdraw completely from the institution or complete their academic program. Students who did not receive a loan disbursement at their institution before July 1, 2026, are not eligible to apply for a Graduate PLUS Loan.

Direct PLUS Loans help pay for educational expenses not covered by other financial aid. The U.S. Department of Education provides these loans to eligible graduate or professional students through schools that participate in the Direct Loan Program.

Eligibility Requirements

To receive a Grad PLUS Loan, you must:

• Be a graduate or professional student enrolled at least half-time at an eligible institution in a program leading to a graduate or professional degree or certificate.
• Do not have an adverse credit history (unless you meet certain additional eligibility requirements).
• Meet the general eligibility requirements for federal student aid.

Steps to Apply for a PLUS Loan

If you are eligible for a Parent PLUS Loan, you must complete the following steps:

1. Sign the Direct PLUS Loan Master Promissory Note (MPN)
   You must sign the Master Promissory Note (MPN), agree to comply with the terms and conditions of the loan.
2. Complete Entrance Counseling
   If you have never received a PLUS Loan, you must also complete Entrance Counseling. This informational session will help you understand your responsibilities as a borrower.
3. Contact the Financial Aid Office
   You may contact your institution's Financial Aid Office for information regarding the application process.

Options for Adverse Credit History

During the application process, a credit check will be conducted. If you have an adverse credit history, you may still be eligible to receive a Grad PLUS Loan through one of the following options:

1. Obtain an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Grad PLUS Loan if you fail to do so.
2. Document to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to your adverse credit history (appeal process).

Under either option, you must complete PLUS Loan Credit Counseling.

If your credit application has been denied or is in a pending status, you may contact the U.S. Department of Education to discuss your situation at 1-800-433-3243.

Once these steps have been completed and your credit is approved, the loan will be disbursed in accordance with federal regulations.

Direct PLUS Loans for Parents of Dependent Students

Effective July 1, 2026, the maximum amount of Direct PLUS Loans that parents may borrow for a dependent student may not exceed $20,000 per year. The maximum total amount of all Direct PLUS Loans that a parent may borrow on behalf of a dependent undergraduate student throughout the student’s academic career is $65,000 per child, regardless of any amounts that have been repaid, forgiven, or canceled.

Requirements for Receiving a Parent PLUS Loan

To receive a Parent PLUS Loan, you must:

• Be a U.S. citizen or eligible noncitizen with a valid Social Security number.
• Be the biological or adoptive parent (or, in some cases, a stepparent) of a dependent undergraduate student who is enrolled at least half-time at an eligible institution.
• Not have an adverse credit history.
• Meet the general eligibility requirements for federal student aid.

Note: Grandparents (unless they have legally adopted the dependent student) and legal guardians are not eligible to receive Parent PLUS Loans, even if they have had primary responsibility for raising the student.

Steps to Apply for a PLUS Loan

If you are eligible for a Parent PLUS Loan, you must complete the following steps:

1. Sign the Direct PLUS Loan Master Promissory Note (MPN)
   You must sign the Master Promissory Note (MPN), agree to comply with the terms and conditions of the loan.
2. Complete Entrance Counseling
   If you have never received a PLUS Loan, you must also complete Entrance Counseling. This informational session will help you understand your responsibilities as a borrower.
3. Contact the Financial Aid Office
   You may contact your institution's Financial Aid Office for information regarding the application process.

Options for Adverse Credit History

During the application process, a credit check will be conducted. If you have an adverse credit history, you may still be eligible to receive a Parent PLUS Loan through one of the following options:

1. Obtain an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Parent PLUS Loan if you fail to do so.
2. Document, to the satisfaction of the U.S. Department of Education, that there are extenuating circumstances related to your adverse credit history (appeal process).

Under either option, you must complete PLUS Loan Credit Counseling. If your credit application has been denied or is in a pending status, you may contact the U.S. Department of Education to discuss your situation at 1-800-433-3243.

Once these steps have been completed, the loan will be disbursed in accordance with federal regulations.

How to apply:

• Parent PLUS: https://studentaid.gov/plus-app/parent/landing   
• Graduate PLUS: https://studentaid.gov/plus-app/grad/landing 

Loan Limits

Students with loan disbursements made prior to July 1, 2026, who are enrolled and will continue their studies at the institution under the same academic program and academic level, will be subject to the temporary exception limits established under the One Big Beautiful Bill Act (OBBBA):

Students whose loans are first disbursed on or after July 1, 2026, including new students, readmitted students, transfer students, or students who have experienced a change in academic level, will be subject to the new loan limits established under the One Big Beautiful Bill Act (OBBBA):

Loans Limits: https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized

Proration

If you are enrolled with less than a full-time academic workload, the loan amount for which you are eligible during that academic year will be reduced proportionately based on your enrollment level. If you enroll full-time, you will be eligible to receive the full student loan amount available for the semester and/or academic year.

The full-time enrollment definitions for undergraduate students (Technical Certificate, Associate Degree, Bachelor's Degree) and graduate/professional students (Master's and Doctoral programs) are as follows:

• Undergraduate Academic Level – 12 credits per semester, 24 credits annually.
• Graduate/Professional Academic Level – 3 credits per semester, 6 credits annually.

Example: Undergraduate: If you enroll in 24 credits for the academic year (12 credits per semester), you may request the maximum annual loan amounts available. However, if you reduce your academic workload during the first semester by withdrawing from courses, the portion of the student loan for which you will be eligible in the second semester will be adjusted accordingly.

Example: Graduate/Professional: If you enroll in 6 credits for the academic year (3 credits per semester), you may request the maximum annual loan amounts available. However, if you reduce your academic workload during the first semester by withdrawing from courses, the portion of the student loan for which you will be eligible in the second semester will be adjusted accordingly.

Interest Rates and Direct Loan Origination Fees for 2026–2027

All interest rates are fixed, meaning they will not change for the life of the loan.