Direct Subsidized Loan
This is a need-based loan available to students in undergraduate, credential or post-baccalaurate programs. Direct subsidized loans are interest-free while students are enrolled at least half-time. Loan repayment begins 6-months after a student graduates, withdraws from school, or drops below half-time enrollment (6 or more units for all academic careers and programs).
Direct Unsubsidized Loan
This is a non need-based loan available to all eligible students. Direct unsubsidized loans accrue interest the student is enrolled. Students choose to pay the interest while in school or allow the interest to accumulate. Loan repayment begins 6-months after a student graduates, withdraws from school, or drops below half-time enrollment (6 or more units for all academic careers and programs).
Interest Rates
2024-2025
Direct subsidized:
- 0% interest rate while you are enrolled at least half-time and during your six-month grace period.
- 6.53% interest rate during your repayment period (rate applies to loans with a first disbursement date on or after 7/1/2024).
- 1.057% origination fee will be deducted from each disbursement.
Direct unsubsidized:
- 6.53% interest rate during your repayment period (rate applies to loans with a first disbursement date on or after 7/1/2024).
- 8.08% interest rate for graduate students (rate applies to loans with a first disbursement date on or after 7/1/2024).
- 1.057% origination fee will be deducted from each disbursement.
2023*2024
Direct subsidized:
- 0% interest rate while you are enrolled at least half-time and during your six-month grace period.
- 5.50% interest rate during your repayment period (rate applies to loans with a first disbursement date between 7/1/2023 and 6/30/2024).
- 1.057% origination fee will be deducted from each disbursement.
Direct unsubsidized:
- 5.50% interest rate for undergraduate students (rate applies to loans with a first disbursement date between 7/1/2023 and 6/30/2024).
- 7.05% interest rate for graduate students (rate applies to loans with a first disbursement date between 7/1/2023 and 6/30/2024).
- 1.057% origination fee will be deducted from each disbursement.
Annual and Aggregate Borrowing Limits
All students are subject to annual and aggregate borrowing limits based on their grade level, degree program, and dependency status. Please select Loan Limits for a complete summary and description of borrowing limits.
Students taking preparatory/pre-requisite course work for official admittance into a graduate/master's program may only receive the Subsidized and/or Unsubsidized loans for a period of 12-consecutive months (1-year) at the 5th -year undergraduate limits: $5,500 Subsidized and $7,000 Unsubsidized.
Master Promissory Note & Loan Entrance Counseling Requirement
Students who choose to borrow a Federal Direct Subsidized or Unsubsidized Loan must complete the following before receiving a loan disbursement. Both requirements can be completed with the U.S. Department of Education at studentaid.gov.
- Loan Entrance Counseling
- Master Promissory Note (MPN)