Printer FriendlyIf you have decided to borrow money to help pay for your education after high school, the U.S. Department of Education offers a simple way to get a loan - through the William D. Ford Federal Direct Loan Program ("Direct Loans" for short).
Be Careful!! Take Out Only What You Need!!
The benefits of the Direct Loan Program
- You will borrow money directly from the federal government without having to find a bank. You will receive your funds through your school, so you will get your money much faster.
- You will have only one lender to deal with (the U.S. Department of Education) once you begin repayment.
- Your loans will never be sold.
- You can select the repayment plan that's right for your financial circumstances.
- You can change repayment plans if your financial circumstances change.
The four types of Direct Loans
- Federal Direct Subsidized Loan
If you have a subsidized loan, the federal government does not charge you interest while you're in school at least half time, during your grace period, and during deferments (postponements of repayment). You must show financial need to receive this type of loan. - Federal Direct Unsubsidized Loan
The federal government charges you interest on these loans while you're in school, in your grace period, or in deferments. You can get this type of loan regardless of financial need. - Federal Direct PLUS Loan
For a parent/stepparent without adverse credit history who wants to borrow for his/her dependent student. The first step in applying for this loan is to complete the UMass Lowell Federal Direct PLUS Loan application located under useful forms on this website or provided by UMass Lowell with the initial financial aid award notification booklet. If approved, a master promissory note will need to be signed. If the loan is denied, both the Federal Direct Loan program and the UMass Lowell Student Loan Office will notify the parent and indicate alternative options. - Federal Direct Consolidation Loan
This loan combines one or more education loans into a Direct Loan. Only one monthly payment is made to the U.S. Department of Education.
Loan Amounts
The maximum amount you may borrow each year depends on
- Your year in school
- Whether you are a dependent student or an independent student
The amount you may borrow each academic year is also limited by
- Your school costs
- The amount of other financial aid you will receive
- (in the case of Direct Subsidized Loans) The Expected Family Contribution (EFC) is used in determining your financial need. Your financial need is used in determining the amount of your Direct Subsidized Loans.
The following table shows you the maximum annual loan amounts you may borrow
| Dependent Student | Independent Student | |||
| Borrower's Academic Level | Total Amount Subsidized & Unsubsidized | Base Amount Subsidized & Unsubsidized | Additional Amount, Unsubsidized Only | Total Amount Subsidized & Unsubsidized |
| Freshman: | $2,625 | $2,625 | +$4,000 | =$6,625 |
| Sophomore: | $3,500 | $3,500 | +$4,000 | =$7,500 |
| Junior/Senior: | $5,500 | $5,500 | +$5,000 | =$10,500 |
*The maximum loan amount is prorated if the remaining portion of your program is less than a full academic year. The prorated amount is calculated based on the number of semester, trimester, or clock hours for which you enroll.
Total Limits
The overall limit for any subsidized loan you may receive (including a combination of Direct Subsidized Loans and subsidized Federal Stafford Loans) is
- $23,000 for undergraduate study
- $65,500 for graduate study, including loans for undergraduate study
The overall limit for subsidized and unsubsidized loan (including a combination of Direct Loans and Federal Stafford Loans) is
- $46,000 for an independent undergraduate student (and certain dependent students)
- $138,500 for a graduate or professional student (including loans for undergraduate study)
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