The Direct Subsidized and Unsubsidized Loans are federal loans available to students to assist with educational related expenses. Information from the FAFSA determines the amount and type of Federal Direct Loan eligibility.
- Direct Subsidized Loan: a "subsidized" loan means that the federal government pays the interest while the student is enrolled at least half-time in school. The interest rate and origination fee information for the Federal Direct Subsidized Loan can be found at Federal Student Aid.
- Direct Unsubsidized Loan: an "unsubsidized" loan means that the student is responsible for paying the interest from the time the loan is disbursed. The interest that accrues will be added to the loan balance when the student is no longer enrolled. The student can pay the interest while in school. The interest rate and origination fee information for the Federal Direct Unsubsidized Loan can be found at Federal Student Aid.
The amount a student can borrow is determined by grade level and dependency/independency status.
Dependent Undergraduate and Post Bacc Students
Grade Level
|
Direct Subsidized Loan |
Direct Unsubsidized Loan |
Total |
| Freshman |
$3,500 |
$2,000 |
$5,500 |
| Sophomore |
$4,500 |
$2,000 |
$6,500 |
| Junior |
$5,500 |
$2,000 |
$7,500 |
| Senior |
$5,500 |
$2,000 |
$7,500 |
| Aggregate Maximum Amount |
$23,000 |
$8,000 |
$31,000 |
Independent Undergraduate and Post Bacc Students
| Grade Level |
Direct Subsidized Loan |
Direct Unsubsidized Loan |
Total |
| Freshman |
$3,500 |
$6,000 |
$9,500 |
| Sophomore |
$4,500 |
$6,000 |
$10,500 |
| Junior |
$5,500 |
$7,000 |
$12,500 |
| Senior |
$5,500 |
$7,000 |
$12,500 |
| Aggregate Maximum Amount |
$23,000 |
$34,500 |
$57,500 |
New for fall of 2026 and beyond
Any student who isn't enrolled in at least 24 credits in any academic year (fall and spring combined) will be subject to a schedule of reduction (SOR) of their federal direct loans. This is a result of the regulations set forth in the One Big Beautiful Bill Act (OB3) found here:
https://www.congress.gov/bill/119th-congress/house-bill/1Reduced Annual Federal Direct Loans for less than full-time Enrollment: Undergraduate students are required to enroll and earn 24 credits per year in order to receive their maximum federal loan eligibility based on their grade level (number of credits they have earned). If a student is enrolled in fewer than 12 credits at the end of the add/drop period, then their current federal loan amount for the term will be pro-rated. If a student earns fewer than 12 credits in a term, then their future loan amount for the spring term will be pro-rated. Summer will still be considered based on remaining eligibility that was not used during the fall and spring term.
Example: Student is enrolled12 credits in the Fall term and 9 credits in the Spring term = 21/24 credits . Therefore, if the student qualifies for $5500 in an Unsubsidized Federal Loan, the disbursements would be reduced to ($4812) $2750 Fall/ $2062 Spring.
Teacher Certification
Students enrolled in eligible state-required teacher certification coursework can receive $5,000 in the Direct Subsidized and Unsubsidized Loan programs. Independent students or undergraduates whose parents are denied a Direct PLUS loan can receive $7,000. Please note, if the student is enrolled in only one semester of the academic year, the loan will be prorated.
Graduate Students
Students enrolled as graduate students can borrow up to $20,500 per year in Direct Unsubsidized Loans. The aggregate maximum amount graduate students can borrow for all undergraduate and graduate years combined is $138,500.
Graduate students must be enrolled in at least three graduate credits to be eligible for a Federal Direct Unsubsidized Loan.
APPLICATION PROCESS
To apply for a Direct Loan, all students must:
-
- Complete the Free Application for Federal Student Aid (FAFSA).
- "Accept", "decline", or "accept a portion" of your Direct Loan on MySRU once you receive your Financial Aid award letter. (Students can decline the Direct Loan on MySRU if they do not want this).
- First time borrowers must complete a Master Promissory Note (MPN) with the U.S. Department of Education. (If you have questions when on this site, you can reach a customer service representative at 1.800.557.7394).
- First time borrowers must complete Entrance Loan Counseling. (If you have questions when on this site, you can reach a customer service representative at 1.800.557.7394).
Note: The SRU Financial Aid Office cannot disburse your Federal Direct Loans until steps 2-4 are completed.
Students can check the status of the required Entrance Counseling and MPN at MySRU.
*Important loan disbursement information concerning enrollment and direct loans*
As per federal regulations, undergraduate students must be enrolled at least half-time (six credits for undergraduate students and three credits for graduate students) to be eligible for Federal Direct Loans.
The federal direct subsidized/unsubsidized and federal direct plus loans will not disburse to the office of student accounts until the student actually begins attendance in a total of six credits. It is the attendance in the second 3 credit class that gives the student 6 credits which constitutes eligibility for federal financial aid.
Examples:
-
-
- If a student is enrolled in two eight week courses, 3 credits in the first 8 weeks and 3 credits in the second 8 weeks, the loan will not disburse until the second class begins.
- If a student is enrolled in a 3 credit course in Pre-session and a credit course in Summer Session II, the loan will not disburse until Summer Session II.
Therefore, students who will not begin attendance in a total of six credits until later in the semester will need to plan accordingly for the purchase of any books or materials for their classes. If a student drops a course and becomes less than half-time, the student will no longer be eligible for federal loans.
There are separate guidelines for disbursement of aid for other programs, please click here for additional information.
Borrower Requirements
Borrowers/students must notify the loan servicing agency when any of the following occur:
- Graduation
- Withdrawal from school
- Attendance is less than half-time enrollment (Undergraduates - Less than 6 credits/Graduates - Less than 3 graduate credits)
- Change of name or address
- Transfer to another school
- Other changes that may affect borrowers' eligibility for deferred payments
ENROLLMENT AND ELIGIBILITY NOTIFICATIONS
If a student or parent enters into an agreement regarding a Title IV Loan (ie. Federal Direct Loan), the student's enrollment and eligibility information will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by authorized agencies, lenders and institutions. Students may also access their own federal loan records through the same site.