Federal Direct Loans
When you apply for a student loan you will receive the money now, but you will need to repay the loan and any interest charges later. Federal student loans are for eligible undergraduate, credential and post-baccalaureate students enrolled at least half-time. The loans you receive will be either subsidized, unsubsidized, or a combination of both.
- A subsidized loan is awarded based on financial need. Interest on subsidized loans is paid by the federal government while you are enrolled at least half-time.
- An unsubsidized loan is not awarded based on financial need. You will be charged interest from the time the loan is disbursed until it is paid in full. You may opt to allow the interest to accumulate while you are in school or during other allowable periods of nonpayment. This interest will be added to the principal amount of your loan, and additional interest will be based on that higher amount. Pay the interest while you are in school if you can.
- Learn more about upcoming changes at the CSU Federal Student Aid Updates webpage(opens in new window).
See Federal Student Loans for more information such as considerations when taking out a loan, reasons for taking out a loan and other information.
See Federal Direct Loan Limits for loan eligibility. You may apply for additional loans above the amount you have been offered if you have not reached your annual loan eligibility and cost of attendance.
See Federal Direct PLUS Loans(opens in new window) for information on loans for parents of dependent undergraduate students.
Interest Rates and Processing Fees
- Federal Direct Loans have fixed interest rates that will not change for the life of the loan
- The loan interest rate depends on when the loan was first disbursed (paid out)
- Interest rates for new federal student loans are set annually and fixed for the life of the loan.
- There is a loan fee on all Direct Subsidized, Unsubsidized, and PLUS Loans*
- Most older loans made before July 1, 2006 have variable interest rates that are adjusted each year on July 1
Direct Subsidized Loans (Undergraduates) | 6.52% fixed |
Direct Unsubsidized Loans (Undergraduates) | 6.52% fixed |
Direct Unsubsidized Loans (Graduate or Professional Students) | 8.07% fixed |
Direct PLUS Loans (Parents; eligible graduate/professional borrowers under limited exceptions) | 9.07% fixed |
*Processing Fees: The loan fee is a percentage of the amount borrowed and is proportionately deducted from each loan disbursement. This means the amount you receive will be less than the amount you borrow. The percentage varies depending on the type of loan:
- Direct Loans: 1.057%
- Direct PLUS Loans: 4.228%
Federal Direct Loan Limits
| Dependent Undergraduate or PBAC | Annual Limit* | Aggregate Limit** | ||
| Sub & Unsub | Add'l Unsub | Annual Total | ||
| First Year (0-29.9 units) | $3,500 | $2,000 | $5,500 | $31,000 (no more than $23,000 of which can be subsidized |
| Second Year (30-59.9 units) | $4,500 | $2,000 | $6,500 | |
| Third Year + (60+ units) | $5,500 | $2,000 | $7,500 | |
| CRED, CCRED | $5,500 | $0 | $5,500 | |
| Independent Undergraduate or PBAC | Annual Limit* | Aggregate Limit** | ||
| Sub & Unsub | Add'l Unsub | Annual Total | ||
| First Year (0-29.9 units) | $3,500 | $6,000 | $9,500 | $57,500 total (no more than $23,000 of which can be subsidized) |
| Second Year (30-59.9 units) | $4,500 | $6,000 | $10,500 | |
| Third Year + (60+ units), PBAC, CCRED, CRED, QLGRAD programs | $5,500 | $7,000 | $12,500 | |
| Independent Graduate | Annual Limit* | Aggregate Limit** | ||
| Unsub | Annual Total | |||
| Graduate*** | $20,500 | $20,500 | aggregate limit varies based on Federal borrowing rules and prior graduate/professional borrowing - visit studentaid.gov | |
* Annual limit, or up to the cost of attendance, whichever is less.
**Aggregate limit, or the cumulative limit of Federal Direct Loan allowed for a degree program. Undergraduate aggregate limits are different for dependent and independent students. The aggregate limit for graduate students is separate from the undergraduate limit.
***Graduate students will be eligible for an unsubsidized loan only. Beginning July 1, 2026, Direct PLUS Loans are generally no longer available to graduate or professional students. A limited exception applies to certain students who borrowed for their current program before July 1, 2026.
Beginning with the 2026–27 school year, annual Federal Direct Loan limits are reduced for students enrolled less than full-time. Students must be enrolled at least half-time to be eligible for a Federal Direct Loan.
Note: Dependent students whose parents are unable to obtain a PLUS loan may borrow loan amounts equivalent to an independent student.
Loan amounts for graduating seniors enrolled for one semester only:
- - enrolled in fewer than 12 units, loans are prorated down, based on units
- - enrolled in more than 12 units, loans are prorated up based on units
Below Half-time Status
Application
2026-27 Federal Direct Loan Application(opens in new window)
Loan Entrance Counseling and Master Promissory Note (MPN)
If you are a first–time borrower of a Federal Direct Loan you must complete Loan Entrance Counseling(opens in new window) and submit a Subsidized/Unsubsidized Master Promissory Note(opens in new window) (MPN) before your first loan disbursement can be released. The promissory note is your promise to repay loan funds disbursed to you.
If you are required to complete and submit a promissory note, you will receive notification by email, and it will appear on your To-Do list in your Student Center. Once you complete these items, they will be removed from your To-Do list within three business days.
Disbursement
Loans are generally released in two disbursements, half in fall and half in spring. One-semester loans have a single disbursement and are available only in certain situations, such as students attending a single term or approved study abroad programs. If you are applying for a loan to help cover additional expenses for one semester, as for study abroad, it is possible to arrange for a one semester loan. Contact the Financial Aid & Scholarship Office to explain your needs.
Back to TopGrace Period
When you graduate, withdraw, or drop below half-time enrollment, you will be required to complete Loan Exit Counseling, which provides information about your grace period, deferment, forbearance, and repayment options.
Direct Subsidized and Direct Unsubsidized Loans have a six-month grace period before you are required to begin repayment.
Direct PLUS Loans do not have a grace period. Parent PLUS borrowers may request deferment while the student is enrolled at least half-time and for six months after the student graduates, leaves school, or drops below half-time enrollment. If a deferment is not requested, repayment generally begins after the loan is fully disbursed, with the first payment due within 60 days after the final disbursement.
Repayment
The U.S. Department of Education assigns your federal student loans to a loan servicer. Your loan servicer will provide information about when repayment begins, where to make payments, and your repayment options.
You are responsible for making your loan payments on time, even if you do not receive a bill or other notice from your loan servicer. If you are having difficulty making payments, contact your loan servicer as soon as possible to discuss available options.
Visit StudentAid.gov to view your federal student loans, find your loan servicer, explore repayment plans, and learn about options if you are having trouble making payments.
Find out who your loan servicer is:
StudentAid.gov
Direct Loan Consolidation:
StudentAid.gov/loan-consolidation
Loan Pages
Types of Loans
- Federal Direct Loans
- Federal Direct PLUS Loans
- California Dream Loans
- Short-Term Loans
- Alternative/Private Education Loans
Other Loan Pages