Federal Direct Subsidized/Unsubsidized Loans are low-interest loans for undergraduate and graduate students who complete a FAFSA.

Eligibility

Student must:

  • Have a valid Free Application for Federal Student Aid (FAFSA) on file;
  • Must be fully admitted as a degree-seeking student in an undergraduate or graduate program at Indiana State;
  • Must be enrolled at least half-time when the loan is expected to be disbursed;
  • Must maintain Satisfactory Academic Progress (SAP) standards;
  • Must be a U.S. Citizen or eligible non-citizen;
  • Must not be in default on an educational loan or owe an overpayment on a federal education grant, or other federal debt, or has made satisfactory arrangements to repay that debt;

How To Apply

Amount

Federal Direct Subsidized Loans

  • Collect interest at 0% while the borrower is enrolled at least half-time;
  • Collect interest at a fixed APR when the borrower graduates or drops below half-time enrollment;
  • Require an origination fee assessed at disbursement for loans depending on when the loan originates;
  • Require unmet need as defined by the FAFSA;
  • Are only available for undergraduate students.

Federal Direct Unsubsidized Loans:

  • Collect interest at a fixed APR;
  • Require an origination fee assessed at disbursement for loans depending on when the loan originates;
  • Are available for undergraduate and graduate students.

Current interest rates are published annually at http://studentaid.ed.gov/sa/types/loans/interest-rates.

Grade levels listed below have been in effect since Fall 2014. Because the Federal Direct Loan program does not require a credit check, it requires both annual and cumulative (lifetime) limits as listed below:

Dependent Students

Maximum Annual Federal Loan Limits

Grade LevelBase Subsidized AmountAdditional Unsubsidized AmountAnnual MaximumAggregate Loan Limits
Freshman (0-29 hrs)$3,500$2,000$5,500$31,000 (Maximum $23,000 in Subsidized)
Sophomore (30-59 hrs)$4,500$2,000$6,500 
Junior (60-89 hrs)$5,500$2,000$7,500 
Senior (90+ hrs)$5,500$2,000$7,500 

Dependent students whose parents are denied a Parent PLUS Loan should refer to the Independent Student Chart.

Independent Students

Maximum Annual Federal Loan Limits

Grade LevelBase Subsidized AmountAdditional Unsubsidized AmountAnnual MaximumAggregate Loan Limits
Freshman (0-29 hrs)$3,500$6,000$9,500$57,500 (Maximum $23,000 in Subsidized)
Sophomore (30-59 hrs)$4,500$6,000$10,500 
Junior (60-89 hrs)$5,500$7,000$12,500 
Senior (90+ hrs)$5,500$7,000$12,500 
Graduate / ProfessionalN/A$20,500$20,500$138,500

Repayment / Disbursement of Funds

  • Loan funds are applied to student accounts approximately ten days before the start of the semester.
  • Half of the amount applied for is disbursed at the start of the fall semester and the other half at the start of the spring semester.
  • Funds will first cover direct educational expenses on the student's account.
  • Any excess funds are refunded to the student via ACH direct deposit or sent to the student's permanent address.
  • Loan amounts will be prorated for undergraduate students graduating in December.
  • Borrowers have the right to cancel all or a portion of the loan with no penalty by submitting a loan reduction form within 14 days of disbursement.

To find out more about repayment options before receiving a Direct Loan, borrowers may contact the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243).

In addition, visit repayment.

Resources