Under the William D. Ford Federal Loan (Direct Loan) Program, the U.S. Department of Education offers two types of loans to eligible Undergraduate, degree-seeking students:

Federal Direct Subsidized Loan

• Direct Subsidized Loans are available to undergraduate students with financial need as determined by both the Free Application for Federal Student Aid (FAFSA) form 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).

Federal Direct Unsubsidized Loan

• Direct Unsubsidized Loans are available to undergraduate students who file the Free Application for Federal Student Aid (FAFSA) form. There is no requirement to demonstrate financial need, however, to be eligible you must have educational expenses not covered by other types of financial aid.
• You are responsible for paying the accrued interest on a Direct Unsubsidized Loan during all periods.

In addition, a financial aid offer for a dependent undergraduate student may include an additional Federal Loan:

Federal Direct Parent PLUS Loan

• 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.

In addition to the general eligibility requirements to receive TIV Federal Student Aid, in general, the requirements for you to receive a Federal Direct Loan include: 

• Be enrolled at least half-time (in at least 6 units)
• Be a degree-seeking Undergraduate student

In short, Direct Subsidized Loans are offered to students who demonstrate financial need (as determined by their FAFSA form). Interest does not accrue on the loan while the student is enrolled at least half-time. Review the table below for an overview of the main differences between a Subsidized and Unsubsidized Loan.

Interest rates are set each year and are fixed for the lifetime of the loan. Generally, interest rates for Federal Direct Loans are lower than private student loans. Find current interest rates on Federal Student Aid.

Loan fees are charged when the loan is disbursed, or released, to your student Bursar account. This means the total amount you receive will be slightly less than what you accept. Find current loan fee information on Federal Student Aid.

Your school determines the loan type(s), if any, and the actual loan amount you are eligible to receive each academic year. At the University of Arizona, an academic year consists of the Fall, Spring and Summer semesters (in that order).

Annual and Aggregate Loan Limits

There are limits to how much you may be eligible to receive per academic year and over the course of your lifetime, which are referred to as your annual and aggregate loan limits. These limits vary depending on your grade level in school and whether you are a dependent or independent student, per your FAFSA form. 

Learn more Annual and Aggregate Loan Limits

Loan Reductions for Students Enrolled Less than Full-Time

Effective Fall 2026, the amount in student loans that can be borrowed for each academic year will be reduced for students enrolled less than full-time. 

Full-time enrollment is defined as:  

• Undergraduate students: 12 + units
• Graduate and Professional students: 9 + units

Students must be enrolled at least half-time (6 units for undergraduate students, 5 units for graduate and professional students) to be eligible to receive federal loans. 

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.  A helpful rule of thumb: don't accept more loans during your degree program than you expect to make during the first year after you graduate.

Watch this video to learn more about responsible borrowing.

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.

Requesting Additional Federal Direct Loan Funds

To request that additional Direct Loan funds be offered, via the Ask Aid portal please complete the Loan/Federal Work Study Adjustment Request Form or contact a member of our Ask Aid team. 

Requesting an Adjustment to or Cancellation of Your Federal Direct Loan(s)

If you have already accepted your Federal Direct Loan(s), but would like to adjust or cancel the amount you accepted, you can submit a request by completing the Loan/Federal Work Study Adjustment Request Form. 

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 cancellation, any account balance created as a result of the reduction or cancellation of a disbursed loan must be repaid by the student immediately.