Federal Direct Loans
DBU participates exclusively in the William D. Ford Federal Direct Loan program, which is the U.S. Department of Education’s federal student loan program. The loans issued by this program are from the U.S. Department of Education rather than from a traditional bank. You must submit a FAFSA each year to qualify for federal student loans. Learn more about FAFSA >>
To be eligible for student loans, you must be:
- A U.S. citizen, national, permanent resident, or other eligible noncitizen
- Enrolled at least half-time
- In good financial standing, not in default owing a refund to any previous aid program
- In good academic standing, maintaining satisfactory academic progress
Learn about the Difference Between a Subsidized and an Unsubsidized Loan >>
Federal Direct Loan Types
Federal Direct Subsidized Loans (Undergraduate)
Direct Subsidized loans are awarded to all eligible undergraduate students who demonstrate financial need, as determined by the FAFSA. No interest accrues while a student is enrolled at least half-time during the grace or deferment periods. Undergraduate students can borrow up to $5,500 in direct subsidized loans per year depending on year in school and dependency status.
First-time borrowers will be required to complete a Master Promissory Note and Entrance Counseling before loan funds can be disbursed.
Federal Direct Unsubsidized Loans (Undergraduate and Graduate)
Unsubsidized loans are non-need-based loans and are available regardless of financial need. Students must be enrolled in a degree program with six or more Title IV credits to be eligible.
First-time borrowers will be required to complete a Master Promissory Note and Entrance Counseling before loan funds can be disbursed.
The federal government does NOT pay the interest. Interest begins to accrue as soon as the loan funds are disbursed. Students may choose to pay the interest that accumulates or have it capitalized, meaning the interest will be added to the principal amount of their loan. Additional interest will be based upon the higher amount. Paying the interest as it accumulates will reduce the amount of interest that must be repaid.
Direct PLUS Loan
PLUS Loans can help parents of dependent undergraduate students and graduate/professional students pay for education expenses up to the cost of attendance minus all other financial assistance.
- Apply for a Direct PLUS Loan for parents
- Apply for a Direct PLUS Loan for graduate or professional students
Please Note: Students who begin their graduate program on or after July 1, 2026, will no longer be offered Grad Plus Loans
Direct Loan Information
Direct Loan Limits
Undergraduate student loan limits range from $5,500 to $12,500 per year depending on certain factors, including the student's year in college and other aid received. To receive a Direct Loan, you must be enrolled at least half-time in at least one Long Semester class within each award period/term in back-to-back classes whose duration is the same length.
| Dependent Students | Maximum Eligibility | |
|---|---|---|
| Freshman | $5,500 | If eligible, up to $3,500 may be subsidized. |
| Sophomore | $6,500 | If eligible, up to $4,500 may be subsidized. |
| Junior or Senior | $7,500 | If eligible, up to $5,500 may be subsidized. |
| Independent Students | Maximum Eligibility | |
|---|---|---|
| Freshman | $9,500 | If eligible, up to $3,500 may be subsidized. |
| Sophomore | $10,500 | If eligible, up to $4,500 may be subsidized. |
| Junior or Senior | $12,500 | If eligible, up to $5,500 may be subsidized. |
Undergraduate & Graduate Student Combined Total (Aggregate) Limits
An aggregate loan limit is the total amount of money a student is allowed to borrow during his/her undergraduate or graduate education.
| Borrower Type | Aggregate Limit |
|---|---|
| Dependent Undergraduate Student | $31,000 (no more than $23,000 can be subsidized) |
| Independent Undergraduate Student | $57,500 (no more than $23,000 can be subsidized) |
| Graduate Student |
Note: Graduate Students who begin their graduate program on or after July 1, 2026 – Aggregate $100,000 Professional Students (definition to be determined) $200,000 Lifetime Maximum (Undergraduate plus Graduate studies) $257,000 |
Direct Loan Interest Rates
The interest rate for most types of federal student loans varies depending on the loan type and the first disbursement date of the loan.
The table below provides interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2024, and before July 1, 2025.
| Loan Type | Borrower Type | Fixed Interest Rate |
|---|---|---|
| Direct Subsidized & Unsubsidized | Undergraduate Students | 6.53% |
| Direct Unsubsidized | Graduate or Professional Students | 8.08% |
| PLUS Loans | Parents and Graduate or Professional Students | 9.08% |
Origination Fees for Direct Subsidized and Unsubsidized Loans
Most federal student loans have loan fees. These fees are a percentage of the total loan amount.
A loan fee comes out of the amount of money that is disbursed (paid out) to you while you’re in school. This means the money you receive will be less than the amount you actually borrow. Students are responsible for repaying the entire amount you borrowed and not just the amount you received.
The chart below shows the loan fees for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after Oct. 1, 2019.
| First Disbursement Date | Loan Origination Fee |
|---|---|
| On or after 10/1/20 and before 10/1/24 | 1.057% |
| On or after 10/1/19 and before 10/1/20 | 1.059% |
Loan Limits & Repayment
The amount borrowed in a Subsidized, Unsubsidized, Parent PLUS, or Grad PLUS loan will enter repayment status when a student is no longer enrolled by either graduating, withdrawing, or if enrollment falls below half-time. We strongly urge student borrowers to contact their loan servicer to establish repayment options. Students can learn more about repayment responsibilities here.
We strongly advise students to review the Annual Loan Limits chart to determine the maximum loans available to borrow. The amount of other financial aid may limit or even reduce the number of loans a student may receive. Students should contact the Office of Financial Aid to have a counselor perform a file review. The Office of Financial Aid will consider students for the maximum amount of subsidized loans for which they are eligible.
If a student uses their total annual loan amounts for the Fall or Spring (or both), no loan availability will remain for the summer. We strongly urge each student borrower to plan accordingly and borrow wisely. If you have any questions, please contact our office. Owed loans may be viewed on the National Student Loan Database website.
Entrance and Exit Counseling
Students awarded and wishing to utilize Federal Direct Loans to pay against educational expenses must visit StudentAid.gov to secure their Federal Loans.
As part of that process, students are required to complete online entrance counseling and sign an electronic Master Promissory Note (MPN) before the loan application process can be completed. This is a federal requirement before loan funds can be disbursed to any student account.
Federal regulations require all student federal loan borrowers to complete exit counseling and to provide updated information at the time a borrower graduates, withdraws, or if enrollment falls below half-time.
It is important that students contact the financial aid office anytime they plan to reduce enrollment to below half-time status or when they plan to withdraw from the university.