the
length of your academic program ![[All About Direct Loans]](allsplash.gif)
The maximum amount you may borrow each academic year depends on
your year in school
the
length of your academic program
whether
you're a dependent student or an independent student
The following chart shows the maximum annual and total amounts you may borrow.
| BORROWER'S ACADEMIC LEVEL | DEPENDENT STUDENT* | INDEPENDENT STUDENT | |||
|---|---|---|---|---|---|
| Subsidized & Unsubsidized | Subsidized | Unsubsidized | Total Amount | ||
| 1st year undergraduate | full academic year | $2,625 | $2,625 | $4,000 | $6,625 |
| 2/3 to less than full academic year | $1,750 | $1,750 | $2,500 | $4,250 | |
| 1/3 to less than 2/3 academic year | $875 | $875 | $1,500 | $2,375 | |
| 2nd year undergraduate | full academic year | $3,500 | $3,500 | $4,000 | $7,500 |
| 2/3 to less than full academic year | prorated | prorated | $2,500 | prorated | |
| 1/3 to less than 2/3 academic year | prorated | prorated | $1,500 | prorated | |
| Subsequent years undergraduate | full academic year | $5,500 | $5,500 | $5,000 | $10,500 |
| less than full academic year | prorated | prorated | prorated | prorated | |
| Graduate or professional student | N/A | $8,500 | $10,000 | $18,500 | |
*For dependent students whose parents cannot borrow under the
Federal Direct PLUS Loan Program, the amount of unsubsidized loans a
student can borrow is the same as for an independent student.
The amount you may borrow each academic year is also limited by
your school costs
the
amount of other financial aid you'll receive
(in the
case of Direct Subsidized Loans) the Expected Family Contribution (EFC).
The EFC - the amount you and your family are expected to pay from your own
resources - is used in determining your financial need. Your financial
need is used to decide the amount of your Direct Subsidized Loans. Your
school can explain how your EFC is calculated. If one of your parents gets
a Direct PLUS Loan for you, the amount he or she may borrow is limited
only by the cost of attendance at your school minus any other financial
aid you receive. If your parents can't borrow a Direct PLUS Loan for you
because they have an adverse credit history, and if
you're a dependent undergraduate, you may be eligible to borrow additional
amounts in the form of Direct Unsubsidized Loans. For more information,
contact your financial aid office.
All Direct Loans except Direct Consolidation Loans have a loan origination fee of 4 percent, deducted proportionately from each loan disbursement. This money goes to the federal government to help reduce the cost of supporting these low-interest loans.
Even if you've borrowed from both the FFEL and Direct Loan programs, your annual and total loan limits cannot exceed the limits given in the above chart. Note that you may not receive both FFELs and Direct Loans for the same loan period.
The overall limit for any subsidized loans you may receive (including a combination of Direct Subsidized Loans and subsidized Federal Stafford Loans) is
$23,000 for undergraduate study
$65,500
for graduate study, including loans for undergraduate study The overall
limit for subsidized and unsubsidized loans (including a
combination of Direct Loans and Federal Stafford Loans) is
$23,000 for a dependent undergraduate student
$46,000
for an independent undergraduate student (and certain dependent students)
$138,500 for a graduate or professional student (including loans for
undergraduate study)
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Interest Rates