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Loan Lifetime Eligibility and General Loan Information

Federal Direct Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education.

Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need.

The U.S. Department of Education pays the interest on a Direct Subsidized Loan

  • While you’re in school at least half-time,
  • For the first six months after you leave school (referred to as a grace period), and
  • During a period of deferment (a postponement of loan payments).

Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but eligibility is NOT based on financial need.

  • YOU are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.


How much can I borrow?

  • Your school determines the loan type(s), if any, and the actual loan amount you are eligible to receive each academic year.
  • There are limits on the amount in subsidized and unsubsidized loans that you may be eligible to receive each academic year (annual loan limits) and the total amounts that you may borrow for undergraduate and graduate study (aggregate loan limits).
  • If the total loan amount you receive over the course of your education reaches the aggregate loan limit, you are not eligible to receive additional loans.  
  • However, if you repay some of your loans to bring your outstanding loan debt below the aggregate loan limit, you could then borrow again, up to the amount of your remaining eligibility under the aggregate loan limit.



 Dependent Students

 Independent Students

(except students whose parents are unable to obtain PLUS Loans)

(and dependent undergraduate students whose parents are unable to obtain PLUS Loans)

First-Year 
Undergraduate Annual Loan Limit

$5,500-No more than $3,500 of this amount may be in subsidized loans

$9,500-No more than $3,500 of this amount may be in subsidized loans

Second-Year 
Undergraduate Annual Loan Limit

$6,500-No more than $4,500 of this amount may be in subsidized loans.

$10,500-No more than $4,500 of this amount may be in subsidized loans

Subsidized and Unsubsidized 
Aggregate Loan Limit

$31,000-No more than $23,000 of this amount may be in subsidized loans

$57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans.


For more information, you can visit the Department of Education website

https://studentaid.gov/understand-aid/types/loans