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Subsidized and Unsubsidized Loans

Subsidized and Unsubsidized Loans


Subsidized Loans are loans for students with financial need, as determined by your cost of attendance minus expected family contribution and other financial aid (such as grants or scholarships). Subsidized Loans do not accrue interest while you are in school at least half-time or during grace and deferment periods.

Unsubsidized Loans are loans for students that are not based on financial need, as determined by your cost of attendance minus other financial aid (such as grants or scholarships). Interest is charged during in-school, deferment, and grace periods. Unlike a subsidized loan, you are responsible for the interest from the time the unsubsidized loan is disbursed until it's paid in full. You can choose to pay the interest or allow it to accrue (accumulate) and be capitalized (that is, added to the principal amount of your loan). Capitalizing the interest will increase the amount you have to repay.

Subsidized and Unsubsidized Loan Limits

The amount you can borrow through the Federal Direct Loan Program is determined by your dependency status and grade level classification in college.

Yearly loan limits for eligible Students:

Dependent Students

Year Credit
Hours
Subsidized
loans
Unsubsidized
loans
Parent
Plus Denial
Freshman 00 - 27 $3,500 $2,000 $4,000
Sophomore 28 - 57 $4,500 $2,000 $4,000
Junior 58 - 89 $5,500 $2,000 $5,000
Senior 92 - + $5,500 $2,000 $5,000

Independent undergraduate students

Year Credit
Hours
Subsidized
loans
Unsubsidized
loans
Freshman 00 - 27 $3,500 $6,000
Sophomore 28 - 57 $4,500 $6,000
Junior 58 - 89 $5,500 $7,000
Senior 92 - + $5,500 $7,000

Stafford loan awards are based on eligibility, student's must be enrolled at least half time (6 credit hours for Undergraduates and 5 credit hours for graduate (masters level), and may not exceed the annual and aggregate loan level limits. ****

Dependent students are eligible for up to $31,000 in combined Subsidized and Unsubsidized loans with a maximum of $23,000 of that in Subsidized loans.

Independent students are eligible for up to $57,500 in combined Subsidized and Unsubsidized loans with a maximum of $23,000 of that in Subsidized loans.

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