William D Ford Federal Direct Loan (Direct Loan) Programs
Direct loans are backed by the federal government. The U.S. Department of Education is the lender. Credit checks are not required for Federal Direct loans. There are two types of Direct Student Loans: subsidized and unsubsidized. Students must demonstrate financial need as determined by the FAFSA to receive a subsidized Direct Loan. The U.S. Department of Education will pay the interest on a subsidized Direct Loan during certain periods of enrollment. A promissory note and entrance counseling must be completed at www.studentloans.gov. Additional information regarding interest rates and repayment options can be found online at https://studentaid.ed.gov/sa/.
Direct PLUS Loans:
These are loans made to eligible parents of dependents, graduate or professional students to help cover the cost of education. PLUS loans do require a credit check. Additional information can be found online at
Parent PLUS Loans | Federal Student Aid. Parents can apply online at www.studentloans.gov.
Annual Loan Limits:
Dependent Students:
• Freshmen: $5,500 - Maximum $3,500 subsidized
• Sophomores: $6,500 - Maximum $4,500 subsidized
• Juniors/Seniors: $7,500 - Maximum $5,500 subsidized
Independent students (and dependent students whose parents are unable to obtain PLUS Loans):
• Freshmen: $9,500 - Maximum $3,500 subsidized
• Sophomores: $10,500 - Maximum $4,500 subsidized
• Juniors/Seniors: $12,500 - Maximum $5,500 subsidized
Maximum Total Debt Upon Completion of Undergraduate Studies:
• Dependent Students: $31,000 - Maximum $23,000 subsidized
• Independent Students: $57,500 - Maximum $23,000 subsidized