Federal Direct Loans

Direct Loans, from the William D. Ford Federal Direct Loan Program, are low-interest loans for eligible undergraduate and graduate students to help cover the cost of higher education. These federal loans are borrowed directly from the U.S. Department of Education at participating schools. These loans do not require a credit check. A small origination fee is withheld from the loan when it is disbursed to you. 

Types of Direct Loans


Direct Subsidized Loans

Direct Subsidized Loans are available to undergraduate students who demonstrate financial need based on the results of the Free Application for Federal Student Aid (FAFSA). You are not charged interest on these loans while you are in school at least half-time and during deferment periods. Graduate students are not eligible for subsidized loans


Direct Unsubsidized Loans

Direct Unsubsidized Loans are available to students regardless of financial need (although the FAFSA must still be filed). Interest accrues on an unsubsidized loan from the time it is first disbursed to you. You can pay the interest while you are in school or allow it to accrue and be capitalized (added to the principal of the loan) upon repayment.

2024-2025 Interest Rates for loans disbursed July 1, 2024 - June 30, 2025

Subsidized and unsubsidized loans also have a 1.057% Origination Fee
Type of LoanUndergraduate StudentsGraduate Students
Subsidized6.533% Fixed Interest RateN/A - Graduate students are not eligible for subsidized loans
Unsubsidized6.533% Fixed Interest Rate8.083% Fixed Interest Rate

2023-2024 Interest Rates for loans disbursed July 1, 2023 - June 30, 2024

Subsidized and unsubsidized loans also have a 1.057% Origination Fee
Type of LoanUndergraduate StudentsGraduate Students
Subsidized5.50% Fixed Interest RateN/A - Graduate students are not eligible for subsidized loans
Unsubsidized5.50% Fixed Interest Rate7.05% Fixed Interest Rate

Borrowing Limits

Loan Deferment

Federal student loan borrowers are eligible to have their loans deferred while enrolled at least half-time (6 credit hours for undergraduates, 5 credit hours for graduates). The deferment process for all federal student loan programs is done automatically, based on enrollment following the first 2 weeks of each semester, and thereafter periodically during the semester.

To check on the status of your federal loans, please contact your federal loan servicer.