FAFSA Code: 002837 | TAP Code: 1010
Federal Direct Subsidized and Unsubsidized Loans are low-interest loans for students to help pay for the cost of a post-secondary education. UB students may be eligible for Federal Direct Loans through the U.S. Department of Education.
To apply for these loans, complete the FAFSA application.
The Free Application for Federal Student Aid (FAFSA) is the only application required to apply for Federal Direct Loans. You must meet all general eligibility requirements and continue to be enrolled at least half-time (6 credit hours) to maintain eligibility.
Eligibility for subsidized loans is also based on financial need.
There are both annual and lifetime limits to the amount you are able to borrow in Direct Loan funds. Additionally, there are both dollar and time limits to the amount of subsidized loans you are able to borrow.
| Dependent Undergraduates | Credit Hours | Subsidized | Additional Unsubsidized | Total (Subsidized & Unsubsidized) |
|---|---|---|---|---|
| First Year | 0-29 | $3,500 | $2,000 | $5,500 |
| Second Year | 30-59 | $4,500 | $2,000 | $6,500 |
| Third Year and Beyond | 60+ | $5,500 | $2,000 | $7,500 |
| Aggregate | ($23,000) | $31,000 | ||
| Independent Undergraduates | Credit Hours | Subsidized | Additional Unsubsidized | Total (Subsidized & Unsubsidized) |
| First Year | 0-29 | $3,500 | $6,000 | $9,500 |
| Second Year | 30-59 | $4,500 | $6,000 | $10,500 |
| Third Year and Beyond | 60+ | $5,500 | $7,000 | $12,500 |
| Aggregate | ($23,000) | $57,500 | ||
| Through June 30, 2012: Graduate and Professional Students* | $8,5000 | $12,000 | $20,500 | |
| Effective July 1, 2012: Graduate and Professional Students** | $0 | $20,500 | $20,500 | |
| Aggregate | ($65,500) | $138,500 |
* Full-time Doctor of Pharmacy, Graduate in Public Health and Clinical Psychology students may be eligible for up to $12,500 in additional unsubsidized loans. Full-time Doctor of Allopathic Medicine and Doctor of Dentistry students may be eligible for up to $20,000 in additional unsubsidized loans. The lifetime aggregate for these programs is $224,000.
** Effective July 1, 2012, the Subsidized Direct Loan is no longer available to graduate/professional students.
If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. This time limit does not apply to Direct Unsubsidized Loans or Direct PLUS Loans. If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your maximum eligibility period. Your maximum eligibility period is generally based on the published length of your current program.
For example, if you are enrolled in a four-year bachelor’s degree program, the maximum period for which you can receive Direct Subsidized Loans is six years (150% of 4 years = 6 years).
Because your maximum eligibility period is based on the length of your current program of study, your maximum eligibility period can change if you change to a program that has a different length. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will count toward your new maximum eligibility period.
Interest Rates (Effective on new loans made between July 1, 2025 and June 30, 2026):
Interest Rates (Effective on new loans made between July 1, 2024 and June 30, 2025):
Origination Fee (Effective on new loans made on or after October 1, 2020 and before October 1, 2026):
First-time borrowers must complete a Master Promissory Note and Entrance Counseling before the loan funds can be disbursed. You will need your FSA ID to complete them at Studentaid.gov.
The electronic Master Promissory Note (e-MPN) is an agreement to pay back all borrowed Direct Subsidized or Unsubsidized Loans. Select the type of MPN that applies to the type of loan you are borrowing to prevent delays in processing.
Entrance counseling explains what a Direct Loan is and how the loan process works. The counseling also provides:
You will be required to complete exit counseling once you cease to be enrolled at least half-time (6 credit hours). The exit counseling will explain the next steps of the loan which includes explaining the purpose of the loan servicer and reviewing the various repayment plans available to you.
If you decide to cancel all or part of your loan, you must notify us by submitting a Financial Aid Revision Request form. If you have already received a refund check, you must return the check along with the form.
Your loans will be deferred while you are enrolled at least half-time (6 credit hours) and for a six-month grace period after you cease half-time enrollment.
During your grace period, you will receive repayment information from your loan servicer. If you have any trouble repaying a loan at any time, contact your loan servicer immediately. The servicer can help you determine if there is a more suitable repayment plan, or discuss deferment or forbearance options if you need to temporarily stop payments.
Certain circumstances might lead to your loans being forgiven, canceled or discharged. Contact your loan servicer for more information regarding eligibility and how to apply for loan forgiveness, cancellation or discharge.
A Direct Consolidation Loan allows you to consolidate (combine) multiple federal loans into one loan. The result is a single monthly payment instead of multiple payments. Contact the Loan Consolidation Information Center at 1-800-557-7392 to ask questions before you apply for a Direct Consolidation Loan.