Direct Loans are low-interest loans for students and parents to help pay for the cost of a student’s education after high school. The lender is the U.S. Department of Education (the Department) rather than a bank or other financial institution. As with all federal student aid, you apply for Direct Loans by filling out the Free Application for Federal Student Aid (FAFSA). Most students use FAFSA on the Web to complete their applications.
The Direct Loan Program offers the following types of loans:

• subsidized; for students with demonstrated financial need, as determined by federal regulations. No interest is charged while a student is in school at least half-time, during the grace period and during deferment periods.
• unsubsidized; not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods.

Loan limits
The maximum amount you can borrow each year in Direct Subsidized and Unsubsidized Loans depends on your grade level and on whether you are a dependent student or an independent student. The following table shows the maximum amount of money you may borrow each academic year in Direct Subsidized or Unsubsidized Loans:

	Dependent student1	Independent Student2
1st-year undergraduate	$5,500 (maxium $3,500 subsidized)	$9,500 ($3,500)3
2nd-year undergraduate	$6,500 ($4,500)	$10,500 ($4,500)

¹Except those whose parents are unable to borrow a PLUS loan.
²These limits also apply to dependent students whose parents are unable to borrow a PLUS loan.
³The numbers in parentheses represent the maximum amount that may be subsidized.

The actual loan amount you are eligible to receive for an academic year is determined by your school and may be less than the maximum annual amounts shown in the chart above.

The interest rates for the Federal Direct Loan Programs are fixed. For loans first disbursed on or after July 1, 2010, the annual rate is 4.5 percent for the Subsidized and 6.8 percent for the Unsubsidized Federal Direct Loans.

The Master Promissory Note can be completed online by visiting studentloans.gov. For more information on Direct loans please visit ed.gov/DirectLoan. If you wish to complete a paper MPN, visit the Financial Aid Office.

The PLUS LOAN PROGRAM is not based on financial need. The PLUS Loan allows parents with good credit to borrow for each child who is enrolled at least half-time and is a dependent student. The yearly loan limit is the cost of education minus the student’s estimated financial aid. The interest rate is fixed at 8.5 percent and is charged from the date of the first disbursement. Repayment begins within 60 days of the second loan disbursement. Applications are available by visiting studentloans.gov and click complete PLUS request process.

The NURSING STUDENT LOAN PROGRAM is intended to help students achieve careers in nursing by providing long-term low interest loans to help meet education costs. These loans are awarded to full- and part-time students and are determined on an individual basis by the Financial Aid Office. Students may borrow a maximum of $2,500 per academic year. Funds are limited, and students are awarded on a first-come, first-served basis. The interest rate of 5 percent begins nine months after graduation or withdrawal, and repayment may extend over a 10-year period. To be eligible for consideration, students must have a current needs analysis form on file in the Financial Aid Office, be a citizen of the United States or an eligible non-citizen, and be enrolled or accepted for enrollment as a full- or part-time student. Interested students should contact the Financial Aid Office.