The Direct Loan program provides loans to qualifying students to assist with paying for educational expenses. The Direct Loan program includes Federal Direct Subsidized, Federal Direct Unsubsidized, and Federal Direct PLUS Loans.  

The FY2025 Federal Budget Reconciliation Act (OB3) introduces several important changes to federal student aid, particularly concerning loan limits and program availability, with most provisions taking effect on July 1, 2026.  Please be aware that eligibility requirements are overseen by the Department of Education and any changes to policy may affect availability of these resources.

Beginning in the 2026/2027 academic year, there are limits on the amount of federal loans that students may be eligible to receive each academic year (annual limits) and the total amounts students may borrow (aggregate limits).  These limits vary depending on the student's:

• year in school,
• status as dependent or independent,
• enrollment status (full-time or less than full-time),
• program of study, and
• eligibility for exception to borrow at pre-OB3 limits. 

Please review Federal Student Aid’s One Big Beautiful Bill Act (OB3) updates page which includes student borrower scenarios and definitions of important terms and concepts, including information on loan limits and loan limit exceptions. 

The Loan Amounts below apply to the 2025-2026 academic year.  

The loan fee/origination fee is subtracted proportionately from each loan disbursement.

Interest rates on Federal Direct Loans are set by federal law each year.  The interest rate, once established, is a fixed rate that will apply for the life of the loan. Interest begins to accrue on federal loans once they are disbursed (paid) to the student account.  

• For Subsidized Loans, the federal government pays the interest that accrues during school and during the 6-month grace period that begins once enrollment ends (or drops below half-time).
• For Unsubsidized Loans, borrowers may choose to make quarterly interest payments during school and during the 6-month grace period or they may choose to defer the interest. Unpaid interest will be capitalized (added to the principal balance) when the loan enters repayment.
• For PLUS Loans, repayment begins within 60 days after the loan is fully disbursed. Borrowers who choose to defer repayment during school may choose to make quarterly interest payments during that time. Unpaid interest will be capitalized (added to the principal balance) when the loan enters repayment.

Learn more about when interest accrues and how interest is calculated on Federal Student Aid's Interest Rates page.

Any students who are U.S. citizens or permanent residents and are enrolled at least half time can apply for federal loans, even if loans were not in the initial financial aid package.

Before borrowing any federal loans, students must complete the Free Application for Federal Student Aid (FAFSA) along with any other requested/required documentation. Learn more through the respective Office of Financial Aid: Undergraduate Students, Graduate Students, Medical Students.

To borrow a PLUS Loan, eligible borrowers must complete the PLUS Loan application process in addition to completing the FAFSA. 

Federal loan eligibility and processing is administered by the respective Office of Financial Aid in partnership with Student Financial Services (SFS).

• The Office of Financial Aid determines federal loan eligibility and creates award offers.
• Student Financial Services (SFS) notifies students to accept or decline their award offers through Banner Self Service. (Go to the Financial Aid tab anytime after May 1st for the upcoming year.) SFS also notifies students to complete federal loan counseling and promissory note requirements through studentaid.ed.gov. Review our Loan Process page to learn more about accepting loans, completing requirements, and loan disbursement.
• SFS disburses loans to students' accounts once all requirements are completed and the semester has begun.