Undergraduate Student Loans | Office of Scholarships and Financial Aid

What types of Federal Direct loans are available for Undergraduate students?

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Under 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 accrued interest on a Direct Unsubsidized 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?

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In 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?

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In 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?

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Find current interest rates and loan fee information on Federal Student Aid.

How much can I borrow?

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Your 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.

Learn more Annual and Aggregate Loan Limits

Deciding how much to borrow and Repayment Estimator

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Before 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 Loan Simulator 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.

How do I increase or reduce the loan I already accepted?

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Requesting 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 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.

Fall 2021-Spring 2022 Federal Direct Loan Dates

In 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.

Federal Direct Loans accepted after the following priority deadlines may not be processed. Please review the important dates below to ensure timely processing of your direct loan funds.

Students and parents must accept Federal Direct Loans before the end of the academic term for which they (or their student) is registered. If students are not registered for the spring term, their federal loans must be accepted and processed before the end of the fall term.


Item	Date
Fall 2021 deadline to enroll in Web Refund	August 20, 2021
Accept loans for December graduates or students not enrolled in University of Arizona courses for Spring 2022	December 16, 2021
Spring 2022 deadline to enroll in Web Refund	December 31, 2021
Must accept 2021-2022 Federal Direct Loans if enrolled in Spring 2022	April 28, 2022

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