Federal Direct Loans
The Federal Direct loan program allows eligible students to borrow funds directly from the Federal Government. Students must be enrolled at least half-time each term to be eligible. Direct Loans can be awarded as subsidized, unsubsidized, or both based on financial need and level of study.
- Subsidized Direct LoansÌýare offered to undergraduate students based on financial need. Interest on the loan is subsidized by the Federal Government during the student’s enrollment and grace period.Ìý
- Unsubsidized Direct LoansÌýare non-need-based loans offered to undergraduate and graduate students. Accrued interest is the responsibility of the student during enrollment and grace period.
Students can accept or decline the federal student loan offer. If loans are not accepted, they will be cancelled 30 days after being offered or after the start of the term, whichever is later.
Parent PLUS Loans
Parent borrowers are not required to demonstrate financial need to borrow a Parent PLUS Loan. However, it is based on your parent’s credit worthiness.Ìý Prospective PLUS borrowers must complete the online PLUS Application at .ÌýIf approved for a Parent PLUS Loan, ÌÇÐÄ´«Ã½ will offer up to $10,000 per academic year, or the remaining cost after all other aid is applied, whichever amount is lower. If additional funding is needed, your parent may request additional PLUS Loan funding.Ìý
Beginning with the 2026–2027 aid year, federal regulationsÌýestablishÌýnew borrowing limits for Parent PLUS Loans. TheÌýmaximumÌýParent PLUS amount is limited to $20,000 per academic yearÌýper student, with a lifetime maximum of $65,000 per student.
A limited exception to the new loan limits may apply for up to three academic years if
- You have not exceeded the standard length of your academicÌýprogramÌýÌý
- You continuously enrolled in the same program at the same institution as of June 30, 2026Ìýand you meet one of the following criteria:
- Your parent had a Parent PLUS Loan disbursed for that program before July 1, 2026
- You had a Direct Subsidized or Unsubsidized Loan disbursed for that program before July 1, 2026.
If these conditions are met, the new limits will not apply while you complete the program (for up to three academic years), provided you maintain continuous enrollment.
The exception ends afterÌýthe one of the following scenarios occur:
- Three academic years pass
- You complete the academic program
- You withdraw or cease enrollment
At that point, the $20,000 annual and $65,000 lifetime limits will apply.
Graduate PLUS Loans
For the 2026–2027 aid year and beyond, the Federal Graduate PLUS Loan will no longer be offered to graduate students. Please take time to review your financing options and plan accordingly.
If you borrowed a Federal Direct Loan before July 1, 2026, while enrolled in a credentialed academic program at ÌÇÐÄ´«Ã½, and have not exceeded the standard length of the academic program you may be able to continue borrowing until oneÌýof the following occurs:
- Three academic years pass
- You complete the academic program
- You withdraw or cease enrollmentÌýÌý
Half-Time Status & Federal Loans
Half-time status at ÌÇÐÄ´«Ã½ is defined differently depending on your program. Get additional information aboutÌýdisbursement based on enrollment level.Ìý
- Standard Undergraduate (6 credits)
- Standard Graduate (6 credits)
- Specialty Graduate (3 credits)
- Doctoral (3 credits)
Annual and Aggregate Loan Limits
Direct Loan Annual Limits
The amount you can borrow annually depends on your grade level, enrollment level, and dependency status.
| Grade Level | Earned Credits | Dependent Undergraduate Student | Independent Students |
| Freshman | 0–29 | $5,500—a maximum of $3,500 can be subsidized | $9,500—a maximum of $3,500 can be subsidized |
| Sophomore | 30–59 | $6,500—a maximum of $4,500 can be subsidized | $10,500—a maximum of $4,500 can be subsidized |
| Junior | 60–89 | $7,500—a maximum of $5,500 can be subsidized | $12,500—a maximum of $5,500 can be subsidized |
| Senior | 90+ | $7,500—a maximum of $5,500 can be subsidized | $12,500—a maximum of $5,500 can be subsidized |
| Undergraduate Parent PLUS Loan | N/A | $20,000 per student* | N/A |
| Graduate | N/A | N/A | $20,500 unsubsidized |
* New annual loan limit goes into effect July 1, 2026.
Direct Loan Aggregate Limits
Ìý
| Type of Borrower | Current Aggregate Loan Limits | New Aggregate Loan LimitsÌý |
| Dependent UndergraduateÌý | $31,000—no more than $23,000 of this amount may be in subsidized loansÌý | No change from current limitsÌý |
| Independent UndergraduateÌý | $57,500—no more than $23,000 of this amount may be in subsidized loansÌý | No change from current limitsÌý |
| Graduate (Unsubsidized Direct Loans)Ìý | Ìý$138,500*Ìý | $100,000 |
| Graduate (PLUS Loan)Ìý | No limit | Eliminated for periods of study beginning on or after July 1, 2026Ìý |
| Parent PLUSÌý | None | Ìý$65,000 per dependentÌý |
*ÌýNew aggregate loan limit (excluding Parent PLUS loans) = $257,500 (includes any amount repaid, forgiven canceled, or discharged)Ìý
You are independent if you meet at least one of the following conditions:
- Are 24 years of age of older;
- Enrolled in a masters or doctorate program;
- Legally married at the time you sign your FAFSA application;
- Have children or other dependents who receive more than half of their support from you now and through June 30 of the year in which you receive financial aid;
- Have legal dependents other than a spouse or children who receive more than half their support from you;
- Are a foster child, or ward of the court after the age of 13;
- Are a legally emancipated minor with documentation of the court judgment (emancipated minor is a formal legal status that must be declared in a court of law. Simply moving out of your parents’ household does not count. A judge must legally declare you emancipated. The court order must still be in effect when you file your FAFSA);
- Are in legal guardianship as determined by a court;
- Are homeless (Homeless is defined as lacking fixed, regular, adequate housing. This includes living in shelters, hotels, cars, etc.);
- Are a veteran of the Armed Forces;
- Are currently serving on active duty in the Armed Forces for other than training purposes.
Federal Direct Loan Award Changes
In accordance with Federal Regulations a student may:
- Make a reduction or cancel Federal Direct Loans that the student previously accepted. (Note: There are timeline
restrictions on when ÌÇÐÄ´«Ã½ may reduce or cancel Federal Direct Loans that have disbursed to a student’s
account.) - ÌýHave Federal Direct Loans previously declined re-offered to the student’s account.
To request a reduction/cancellation of previously accepted Federal Direct Loans or to have previously declined Federal Direct Loans be re-offered the completed Change Form should be submitted to /help/submit-case.
The Cost of Borrowing
The loan origination fee percentages are as follows:
- 1.057% for Direct Subsidized and Direct Unsubsidized loans
- 4.228% for Direct PLUS loans (for both parent borrowers and graduate/professions student borrowers)
This fee, with proceeds to the U.S. Department of Education, will be deducted from each disbursement before it is credited to your university account.
The Interest Rate
| Loan type | Borrower type | Loans first disbursed on or after July 1, 2024 and before July 1, 2025 | Loans first disbursed on or after July 1, 2025 and before July 1, 2026 |
| Direct Subsidized Loans | Undergraduate | 6.53% | 6.39% |
| Direct Unsubsidized Loans | Undergraduate | 6.53% | 6.39% |
| Direct Unsubsidized Loans | Graduate or Professional | 8.08% | 7.94% |
| Direct PLUS Loan | Parent and Graduate or Professional | 9.08% | 8.94% |
All interest rates shown in the chart above are fixed rates that will not change for the life of the loan. Visit for more information on Federal Direct student loan interest rates.
Entrance Loan Counseling
When you are a new borrower of a Federal Direct Student Loan at ÌÇÐÄ´«Ã½, you must complete an entrance loan counseling session so that you will know your rights and responsibilities as a borrower. The online session will take you about 20 minutes to complete. You will only need to complete this information once.
Federal PLUS Loan Credit Counseling
PLUS Loan Credit Counseling is required for Graduate PLUS borrowers whose loans are endorsed.
Promissory Note
Borrowing from the Direct Loan program requires the completion of an Electronic Master Promissory Note. While attending ÌÇÐÄ´«Ã½ you can use the E-MPN for multiple loans over one or more academic years. You will only need to complete this information once.
Exit Loan Counseling
ÌÇÐÄ´«Ã½ student borrowers who have taken out subsidized and unsubsidized Direct Loans, Grad PLUS loans, and/or Federal Consolidated loans must complete an online exit counseling session when they graduate, withdraw, or drop below half-time enrollment. Exit counseling helps borrowers understand their repayment plan options and their rights and responsibilities in the loan repayment process.
Ìýto start the exit counseling process and then select "Complete Counseling" and "Exit Counseling."
Note: Exit counseling is not the same as the Financial Awareness Counseling (FAC) tool, which can be found on the same website. Using the FAC will not fulfill your exit counseling requirement, nor will taking a demo counseling session.
Repayment
You will begin to repay your loan at the end of a six-month grace period that begins when you graduate, leave school, or drop below half-time enrollment (6 credits). Learn more aboutÌýloan repayment.
Student Loan Ombudsman
If you are interested in contacting theÌý, please see the information below.
Telephone:Ìý877-557-2575
Fax: 606-396-4821
FSA Ombudsman Group
P.O. Box 1854
Monticello, KY 42633
For Washington State residents seeking information and resources about student loan repayment or seeking to submit a complaint relating to your student loans or student loan servicer, please visit the Washington Student Achievement Council'sÌýÌýor contact theÌýStudent LoanÌýAdvocate.