Loyola University Maryland

Office of Financial Aid

William D. Ford Federal Direct Loan Program

Direct Subsidized Loan

Direct Subsidized Loans are available to undergraduate students enrolled at least half time that demonstrate financial need. First year undergraduate students can borrow up to $3,500, second year students $4,500, and $5,500 for third- and fourth-year students. 

The interest rate is 2.75 percent for loans disbursed between July 1, 2020 and June 30, 2021. Interest rates are established each year for the Direct Subsidized Loans. The interest rate established for each loan is fixed and will apply for the life of the loan.

The U.S. Department of Education pays the interest on a Direct Subsidized Loan:

  • while you are 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)

The standard repayment period is up to 10 years. Subsidized Direct Loans, where the first disbursement is made on or after October 1, 2020 carry a 1.057 percent federal origination fee. Net proceeds will equal 98.943 percent of the loan amount.

Maximum eligibility period to receive Direct Subsidized Loans:

There is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your "maximum eligibility period". You can find the published length of any program of study in Loyola's catalog.

For example, if you are enrolled in a 4-year bachelor's degree program, the maximum period for which you can receive Direct Subsidized Loans is 6 years (150% of 4 years = 6 years).

Your maximum eligibility period is based on the published length of your current program. This means that your maximum eligibility period can change if you change programs. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count against your new maximum eligibility period.

Direct Unsubsidized Loan

Direct Unsubsidized Loans are available to undergraduate students; there is no requirement to demonstrate financial need. Dependent students (except students whose parents are unable to obtain Plus loans) are eligible to receive up to $2,000 for all four years.

Independent students may borrow up to an additional $6,000 per year for the first and second years of undergraduate study and up to an additional $7,000 per year for subsequent undergraduate study through the unsubsidized Direct Loan Program. Dependent students may borrow up to the same amounts through this program, but only if the student's parent is denied eligibility to borrow funds through the Federal PLUS Loan Program.

The interest rate is 2.75 percent for loans disbursed between July 1, 2020 and June 30, 2021. Interest rates are established each year for unsubsidized Direct Loans. The interest rate established for each loan is fixed and will apply for the life of the loan. The origination fee is the same as specified above under the description of the Direct Subsidized Loan (1.057 percent) however, interest accrual begins immediately during in-school and deferment periods. If you choose not to pay the interest while you are in school and during grace periods, deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).

New borrowers:

Must complete the following before loan funds will be applied to their account:

Federal Direct Loan borrowers who graduate, withdraw, or drop below half-time enrollment must complete an online Exit Counseling session.