Undergraduate Loan Guide
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There are two distinct Federal Direct Loan programs for students:

1. Subsidized Loan Program: The subsidized program is based on financial need, and the borrower does not pay interest while enrolled at least half-time. 
2. Unsubsidized Loan Program: The unsubsidized loan program does not have this in-school subsidy and is not need-based. All eligible students may apply for and receive these funds. 

Under the unsubsidized program, interest can accumulate or capitalize until the borrower is out of school, increasing the total amount owed. The borrower can make interest-only payments to avoid capitalization. View up-to-date information on interest rates and loan origination fees.

View up-to-date information on interest rates and loan origination fees

Parent PLUS Loans are for parents who wish to borrow to help pay for their student's education.

Parent PLUS Loans are federal loans available to parents who want to help pay for their student's educational expenses.

• You must complete the FAFSA before applying for a Parent PLUS Loan.
• Parent PLUS Loan applicants are subject to a credit check.
• Parents may borrow up to the student's cost of attendance minus other financial aid received. Beginning July 1, 2026, new parent borrowers are limited to $20,000 per student per year and a lifetime maximum of $65,000 per student.
• Repayment typically begins within 60 days of the loan being fully disbursed. Parents may request a deferment during the application process. If approved, payments can be postponed while the student is enrolled at least half-time and for six months after the student graduates, leaves school, or drops below half-time enrollment.
• Parent PLUS Loans are unsubsidized. Borrowers are responsible for paying all accrued interest.

The U.S. Department of Education funds Parent PLUS Loans. Parents who wish to apply must complete the application through StudentAid.gov. Students accept approved Parent PLUS Loans through SkyLink.

View current interest rates and loan origination fees

If a parent is denied a Parent PLUS Loan, a dependent student may qualify for additional unsubsidized Direct Loan funding. Loan origination fees are deducted from the loan at disbursement and are subject to change.

Private loans have no government subsidy. These college loans have stricter creditworthiness requirements and usually have higher interest rates than federal student loans.

The amount of borrowing that undergraduate students may do per academic year depends on the number of credits earned.

Loan Limits for Part-Time Enrollment: Beginning July 1, 2026, students enrolled in fewer than 12 credit hours may have reduced eligibility for federal loans. Learn more about federal financial aid changes for 2026-27.

Parent PLUS Loans: Parents may borrow up to the student's cost of attendance minus other financial aid received, including grants, scholarships, work-study, and student loans. Parent PLUS Loans cannot exceed $20,000 per student per year.

Federal Direct Loan Limits:

• Dependent undergraduate students may borrow up to $31,000 in federal Direct Loans over their academic career, including no more than $23,000 in subsidized loans.
• Independent undergraduate students may borrow up to $57,500 in federal Direct Loans over their academic career.

After you graduate, leave school, or drop below half-time enrollment, your federal student loans enter repayment.

If you have Direct Subsidized or Direct Unsubsidized Loans, you receive a six-month grace period before regular payments are required.

The U.S. Department of Education works with several loan servicers that manage billing and customer service for federal student loans. Your loan servicer can help you understand repayment options, manage your account, and address questions about your loans.

The Federal Student Aid website provides detailed information about loan repayment plans for students and parents. You can also use the Loan Simulator to estimate monthly payments, compare repayment options, and explore eligibility for different repayment plans.