What To Know About Student Loans

For undergraduate or graduate students, a Direct Subsidized Loan is available to students who have a financial need. A Direct Unsubsidized Loan is an option for students who do not demonstrate financial need. Need is determined by completion of the Free Application for Federal Student Aid (FAFSA).

• Dependent students: First year of undergraduate school: $5,500, with no more than $3,500 being subsidized; second year of undergraduate school: $6,500, with no more than $4,500 being subsidized; third year and beyond of undergraduate school, $7,500, with no more than $5,500 being subsidized.

• Independent students: First year of undergraduate school: $9,500 with no more than $3,500 being subsidized; second year of undergraduate school: $10,500, with no more than $4,500 being subsidized; third year and beyond of undergraduate school: $12,500, with no more than $5,500 being subsidized; graduate/professional students $20,500 (unsubsidized only).

• Aggregate lifetime maximums for Direct Subsidized and Unsubsidized Loans are: $31,000, dependent undergraduate students (no more than $23,000 may be subsidized); $57,500, independent undergraduate students (no more than $23,000 may be subsidized); and $138,500, graduate or professional students (no more than $65,500 may be subsidized).

Graduate or professional students do not have to demonstrate financial need to borrow a PLUS Loan, but must have a good credit history and have already applied for annual loan maximum eligibility under the Direct Subsidized or Unsubsidized Loan program. Maximum loan amount is the cost of attendance less other financial aid received.

Parents of dependent undergraduate students under age 24 do not have to demonstrate financial need to borrow a Direct PLUS Loan, but must have a good credit history. Maximum loan amount is the cost of attendance less other financial aid received.

After graduation or leaving school, some borrowers consider combining their multiple eligible federal student loans into one Direct Consolidation Loan; however, considering other repayment options first may save you money on your loan. Go to Direct Consolidation Loans for more information.