Undergraduate Student Loans
The U.S. Department of Education offers low-interest loans to eligible students to help cover the cost of education.
What types of Federal Direct loans are available for Undergraduate students?
Click or enter to reveal information below Click or enter to hide information belowUnder the William D. Ford Federal Loan (Direct Loan) Program, the U.S. Department of Education offers three types of loans to eligible Undergraduate, degree-seeking students.
- Direct Subsidized Loans are available to undergraduate students with financial need as determined by both the Free Application for Federal Student Aid (FAFSA) and your school's Cost of Attendance (COA). The U.S. Department of Education pays the interest on a Direct Subsidized Loan while you are enrolled at least half-time, for the first six-months after you leave school (referred to as your “grace period”), and during a period of deferment (a postponement of loan payments).
- Direct Unsubsidized Loans are available to undergraduate students; there is no requirement to demonstrate financial need. You are responsible for paying the interest on a Direct Subsidized Loan during all periods.
- Direct PLUS Loans are available to parents of dependent, undergraduate students. Like the Direct Unsubsidized Loan, there is no requirement to demonstrate financial need. This loan is credit-based.
Am I eligible for a Federal Direct loan?
Click or enter to reveal information below Click or enter to hide information belowIn general, the requirements for you to receive a Federal Direct Loan include:
- Be enrolled at least half-time
- Be a degree-seeking Undergraduate student
Learn more about the general eligibility requirements to receive federal student aid
What is the difference between a Subsidized and Unsubsidized Loan?
Click or enter to reveal information below Click or enter to hide information belowIn short, Direct Subsidized Loans have slightly better terms to help students with financial need. Review the table below for an overview of the main differences between a Subsidized and Unsubsidized Loan.
|
|
Subsidized Loan |
Unsubsidized Loan |
|---|---|---|
|
Requires Financial Need |
X |
|
|
Loan Amount cannot exceed your financial need |
X |
|
|
Loan amount cannot exceed your Cost of Attendance |
X |
X |
|
U.S. Department of Education pays the interest during certain periods of time |
X |
|
|
School determines how much you can borrow |
X |
X |
|
Six-month grace period after you leave school (repayment postponed) |
X |
X |
|
Interest accrues during all periods of time if not paid |
|
X |
What are the Interest Rates and Fees for the Federal Direct Subsidized and Unsubsidized Loans?
Click or enter to reveal information below Click or enter to hide information belowThe interest rate displayed below apply to loans first disbursed between July 1, 2018 and June 30, 2019.
|
Type of Rate/Fee |
Rate/Fee |
|---|---|
|
Fixed Interest Rate for Subsidized and Unsubsidized Loans |
5.05% |
|
Lifetime interest rate cap (undergraduate loans) |
8.25% |
|
Origination Fee Loans first disbursed on or after October 1, 2017 and before October 1, 2018 |
1.066% |
|
Origination Fee Loans first disbursed on or after October 1, 2018 and before October 1, 2019 |
1.062% |
* Prior loans are not affected by the rate change indicated above.
How much can I borrow?
Click or enter to reveal information below Click or enter to hide information belowYour school determines the loan type(s), if any, and the actual loan amount you are eligible to receive each academic year (i.e., at the University of Arizona an academic year consists of the Fall, Spring and Summer terms). There are limits on the amount in loans you may be eligible to receive which is referred to as your annual loan limit and your aggregate loan limit. These limits vary depending on your grade level in school and whether you are a dependent or independent student.
Deciding how much to borrow and Repayment Estimator
Click or enter to reveal information below Click or enter to hide information belowBefore you take out a loan, it’s important to understand that a loan is a legal obligation that you will be responsible for repaying with interest. You may not have to begin repaying your federal student loans right away, but you don’t have to wait to understand your responsibilities as a borrower.
Before you borrow or enter repayment, you can use the Department of Education's Repayment Estimator to get an early look at which repayment plans you may be eligible for and see estimates for how much you would pay monthly and overall.
Loan acceptance and other important deadlines
Click or enter to reveal information below Click or enter to hide information belowIn general, loans can begin to be accepted in mid-July for the following academic year (fall and spring semester) and must be accepted by the last day of the semester in which you attend.
A student is no longer eligible for loan funds if they cease attendance or their enrollment becomes less than halftime and the loans were not accepted before the change in enrollment.
How do I increase or reduce the loan I already accepted?
Click or enter to reveal information below Click or enter to hide information belowRequesting Additional Federal Direct Loan Funds
To request that additional Direct Loan funds be offered, you must contact our office via the Ask Aid portal or 520-621-1858.
Requesting Cancelation of Your Federal Direct Loan(s)
A written request (fax: 520.621.9473, email: via the Ask Aid portal is required to reduce or cancel a Federal Direct Loan. If the funds have already disbursed to your Bursar billing account, you will be required to return the disbursed funds before the loan will be cancelled. Any account balance created as a result of the reduction or cancelation of a disbursed loan must be repaid immediately.
Your consent is not required if the University of Arizona (UA) must cancel or reduce your loans to remain in compliance with Federal regulations. Regardless of the type of cancelation, any account balance created as a result of the reduction or cancelation of a disbursed loan must be repaid by the student immediately.