Federal Direct Subsidized, Unsubsidized

Federal student and parent loans are issued through the Federal Direct Loan program from the U.S. Department of Education. 

The subsidized and unsubsidized are low-interest loans for students to help pay for the cost of higher education after high school. You’ll have a single point of contact and online access to your Direct Loan account information. There are several repayment options to choose from once you are in repayment.

You are not required to accept the loan and we will not process the loan unless you accept it. Loans are available to both dependent and independent students,

Remember, student loans must be repaid. Borrow what you need to fill the gap between grants or scholarships and the cost to attend school.

Note: All Undergraduate are required to enrolled in 6 units for the loan to disburse.

Eligibility Requirements

  1. Submit your Free Application for Federal Student Aid (FAFSA) and other supporting documents, if required.
  2. You must be enrolled or accepted for enrollment in a degree, certificate or professional program.
  3. Your enrollment status must be at least half-time, (the equivalent of 6 units).
  4. Must be a citizen or eligible non-citizen (permanent resident) of the United States.

Subsidized Loan

  1. Student must have financial need - as determined by your FAFSA application
  2. Federal government pays interest on your behalf until you enter your grace period - the time you are no longer enrolled on at least a half-time basis
  3. Repayment begins at the end of the 6 months grace period

Important Note: Effective July 1, 2013, eligibility for the interest subsidy has a 150% time limitation for "new borrowers" of Subsidized Stafford Loans.

A "new borrower" is defined as a person who has never borrowed a Stafford loan OR a person with a $0 existing balance as of July 1, 2013.

If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your current program. You can find the published length of your program in the school's catalog.

Unsubsidized Loan

  1. Not need based
  2. Maximums based on grade level and dependency status
  3. Federal government does not pay interest
  4. Interest is fixed
  5. No obligation to make payments while enrolled at least half-time
  6. Interest accrues and capitalized during periods of enrollment in school and/or in deferment

Interest Rates and Loan Fees

Interest rates are adjusted by Congress annually, with a new rate taking effect each July 1st. Although the interest rate for new loans may change each July 1, the rate received will be fixed for the life of the loan.

In addition to the interest rate, Direct Loans charges an origination fee on all Stafford loans, which is deducted from your loan funds at the time of disbursement.

Please check the student aid website for interest rates and loan fees for current and past years.

Accepting and Decline the Loan

  1. Log Into the Portal
  2. Click Titan Online
  3. Click Student Center
  4. Click 'Accept/Decline Awards' on the left side under 'Finances'
  5. Click the 'Aid Year'
  6. Click to check mark the 'Accept' box to accept, or Click to check mark to 'Decline'
    1. If you decline the loans, click submit to finalize your decline of the loans
  7. Review and accept a portion or the full amount of the loan.
  8. Click 'Submit' to finalize your accepted loan amount.
  9. Complete both the Loan Entrance Counseling and the Subsidized/Unsubsidized Master Promissory Note (MPN) by logging into Student Loans.


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 you may borrow for undergraduate and graduate study (aggregate loan limits).  The actual loan amount you are eligible to receive each academic year may be less than the annual loan limit. These limits vary depending on your grade level and your dependency status.


  Dependent Students* Independent Students*

Academic Year

Subsidized  Unsubsidized   Combined Subsidized Unsubsidized Combined

Year 1   (0-29 Earned Units)

$3,500 $2,000 $5,500 $3,500 $6,000 $9,500

Year 2   (30-59 Earned Units)

$4,500 $2,000 $6,500 $4,500 $6,000 $10,500

Year 3   (60-89 Earned Units)

Year 4   (90+ Earned Units)

$5,500 $2,000 $7,500 $5,500 $7,000 $12,500

Post-Baccalaureate Unclassified

$5,550 N/A $5,500 $5,500 $7,000 $12,500

For financial aid purposes, you must have earned a minimum of 30 units to be considered a sophomore; 60 units to be considered a junior; 90 units to be considered a senior. Your loan will be processed at the grade level assigned by the office of Admissions and Records.

* Includes Dependent students whose Parents are PLUS loan denied.

Restriction for graduating seniors with one-semester loan: We are required by federal law to prorate (determine partial loan eligibility) when an undergraduate student plans to graduate at the end of the one term for which they are receiving a Stafford loan. For example, a senior who will be graduating at the end of fall term will be subjected to proration of their annual loan amount because they will not attend the whole academic year.


Aggregate Limits

Subsidized Only Subsidized and
Unsubsidized Combined
Undergraduate - Dependent  $23,000 $31,000
Undergraduate - Independent  $23,000 $57,500