Federal Student Aid: Learn more about Direct Loan options.
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Federal Direct Student Loan Program

The Federal Direct Student Loan Program includes both subsidized loans and unsubsidized loans. Subsidized loans are awarded based on financial need. Unsubsidized Loans are not based on financial need.

The other main difference between the two loans is interest accrued. With subsidized loans, there is no interest charged to the student during the in-school or six-month grace period, which begins when the student ceases at least half-time enrollment. With unsubsidized loans, the borrower is charged interest from the time the loan is disbursed until it is paid in full. The interest can be deferred while the student is enrolled at least half time, but will be capitalized (added to the principal) when repayment begins.

Undergraduate Students

Subsidized loans: Fixed interest rate of 5.6 % will apply to all loans disbursed between July 1, 2009 and June 30, 2010.
Unsubsidized loans: Fixed interest rate of 6.8 % will apply to all loans disbursed between July 1, 2009 and June 30, 2010.
Loans disbursed after July 1, 2009 will have .5 % origination fee (1.5% minus 1.0% rebate that is retained by making on-time payments).

2009-2010 Annual Loan Limits
	Dependent Student	Independent Student
First year: 0-29 hours	$5,500	$9,500
Second year: 30-59 hours	$6,500	$10,500
Third-Fourth year: >60 hours	$7,500	$12,500
Undergraduate Total	$31,000	$57,500

Graduate Students

A fixed interest rate of 6.8.% will apply to all loans disbursed between July 1, 2009 and June 30, 2010.
Loans disbursed after July 1, 2009 will have .5 % origination fee (1.5% minus 1.0% rebate that is retained by making on-time payments).
Annual loan maximum is $20,500 (No more than $8,500 may be subsidized)
Cumulative maximum of $138,500 (No more than $65,500 may be subsidized)