Federal Direct Loans

Important Update The Biden-Harris Administration’s Student Debt Relief Plan provides targeted debt relief to low- and middle-income families

The U.S. Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients and up to $10,000 in debt cancellation to non-Pell Grant recipients for undergraduate, graduate and Parent PLUS loans held by the Department of Education where the first disbursement was on or before June 30, 2022. Borrowers are eligible for this relief if their individual income is less than $125,000 or $250,000 for households. Information about the program is still being released, and the Department of Education is the best source of information about the plan. Students and borrowers can learn more about the program via the Frequently Asked Questions on the Federal Student Aid Biden-Harris Administration’s Student Debt Relief Plan explainer page. We encourage borrowers to sign up on the Department of Education subscription page to receive notification when more details are released. The loan forgiveness is not applicable for loans borrowed during the 2022-23 year.


Federal Direct Loan Payments Will Restart After December 31, 2022
The Federal Direct Loan payment pause and 0% interest period on borrowed Federal Direct Loans ends December 31, 2022. During the COVID-19 emergency, federal student loan payments were paused and interest rates on loans were temporarily set at 0%. The Biden Administration has granted another extension, extending the Student Loan Pause from August 31, 2022 through December 31, 2022. This is expected to be the final extension of the repayment pause. If you will not be enrolled in at least 6 units in the spring 2023 term you should be on the lookout for updates from your loan servicer as you get ready for payments to begin in 2023.

Did you know you can borrow less than your total loan offer?

A little math now can save you hundreds or thousands of dollars later! Wise borrowing means knowing how to figure out how much you need to borrow to cover your expenses and borrowing only that amount. Take a look at this budget example to help you think about your own budgeting process.

Federal Direct Subsidized Loan

A Federal Direct Subsidized Loan is a low-interest, need-based loan with flexible repayment options.

Am I Eligible?

This loan is available to undergraduate students who meet basic eligibility requirements.
The U.S. Department of Education pays the interest on a Direct Subsidized Loan:

  • While you’re in school at least half-time
  • For the first six months after you leave school (referred to as a grace period)*
  • During a period of deferment (a postponement of loan payments)

*Note: If you received a Direct Subsidized Loan that was first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.

See more information about eligibility requirements, interest and fees, repayment option and the latest federal student aid updates.

Federal Direct Unsubsidized Loan

A Federal Direct Unsubsidized Loan is a non-need based, low-interest loan with flexible repayment options. It is available to both undergraduate and graduate students.

The Department of Education has information about eligibility, borrowing limits, interest and fees, repayment information, and the latest federal student aid updates.

Helpful Tips

After you receive your official financial aid offer, you can work on completing loan requirements. To begin, you should: