Skip to main content Skip to main content

Federal Direct Loans

What is a Federal Direct Loan?

Applying for a Federal Direct Loan

Graduating Seniors Loan Amounts

Disbursement of a Federal Direct Loan

Exit Interviews

 

What is a Federal Direct Loan?

Through the Department of Education, students may qualify for Federal Direct Loans by completing the Free Application for Federal Student Aid (FAFSA). Federal Direct Loans are available to all undergraduate and graduate students who meet the necessary qualifications

Among other requirements for consideration of Direct Loans are admission to a degree-seeking program, at least half-time enrollment and the borrower cannot be in default on a Federal student loan or owe a repayment of Federal Title IV aid.

Remember: Borrow only what you need. Live like a student today so you don’t have to tomorrow!

Students should visit the National Student Loan Database System, (NSLDS) often to review their current loan history.


Subsidized and Unsubsidized Loans

Subsidized loans are need based aid and available to undergraduate students. The interest is paid by the U.S. Departmet of Education while you attending school at least half-time.

Unsubsidized loans are not need based and are available to undergraduate and graduate students. Interest accrues while you are attending school. Half-time enrollment is required.

***Repayment for both types of loans begins 6 months after you graduate, withdraw or drop below half-time.



Federal Direct Loan Origination Fee

Date of First Disbursement

Origination Fee % Sub/Unsub

On or after 10/01/17 and before 10/01/18

1.066%

 

Undergraduate Interest Rates
Date of 1st DisbursementSubsidized/Unsubsidized
7/01/17 - 6/30/18 4.45%
7/01/18 - 6/30/19 5.05%

 

Graduate Interest Rates
Date of 1st Disbursement Unsubsidized
7/01/17 - 6/30/18 6.00%
7/01/18 - 6/30/19 6.60%

 

Annual Loan Limits
Annual Loan Limits for Dependent Student
 
Grade Level by Credits
Subsidized Maximum
Total (Subsidized and Unsubsidized)
Freshman (0-29)
$3,500
$5,500
Sophomore (30-59)
$4,500
$6,500
Junior/Senior (60+)
$5,500
$7,500
Annual Loan Limits for Independent Students
Grade Level by Credits
Subsidized Maximum
Total (Subsidized and Unsubsidized)
Freshman (0-29)
$3,500
$9,500
Sophomore (30-59)
$4,500
$10,500
Junior/Senior (60+)
$5,500
$12,500
Teacher Certification
$5,500
$12,500
Annual Loan Limits for Graduate and Professional Students

Graduate and Professional Studies

N/A
$20,500
Lifetime Maximum Loan Limits
Dependent students:
Maximum Subsidized $23,000
$31,000 Total 
Independent Students:
Maximum Subsidized $23,000
$57,500 Total
Graduate and Professional Students
Maximum Subsidized $65,500** (Grad students were eligible to borrow sub loans prior to 2012)
$138,500 Total

*Dependent students whose parents are unable to borrow a PLUS loan are allowed to borrow as Independent students. Contact the Office of Financial Aid and Scholarships for further information.

 

Applying for a Federal Direct Loan

* Before receiving a Federal Direct Loan, borrowers are required to complete a student loan entrance counseling interview.

* The Master Promissory Note (MPN) is required to be completed by each borrower. The MPN is a legal contract that binds you to the federal government. Signing this document indicates that you promise to repay the loan(s) you have borrowed.  

Graduating Seniors Loan Amounts 

Per federal regulation, we must prorate the loan amounts of graduating undergraduate seniors who are attending only one semester of an academic year. Prorating limits the amount of subsidized/unsubsidized loan a graduating senior can borrow in a single-term only loan. The prorated amount is determined by dividing the number or credits a student is enrolled in by 24, multiplied by the annual loan limit.

Disbursement of a Federal Direct Loan

You will receive an email that will provide details about the amount, type, lender, and estimated dates of disbursement of funds. If you wish to cancel or reduce your loans, you will have 30 days after the loan period to make this request. You must submit a written statement to the Office of Financial Aid and Scholarships to cancel or reduce your loan(s).

**Any Federal Direct Loan funds received after the last day of the semester follow Prior Term Disbursement Regulations. Grades must post to your academic record to help determine your eligibility to receive your funds. 

Exit Interviews 

When you graduate or withdraw from MSU Denver, you are recommended to complete an online Exit Counseling at Direct Loans Exit Counseling. This will help you to review your borrower rights and responsibilities. These are the same borrower rights and responsibilities that you accepted on your Master Promissory Note (MPN).