The Federal Direct Loan Program
Federal Aid Programs 2025-2026
One of the largest federal aid programs is the William D. Ford Federal Direct Lending Program. It comprises loans such as the Federal Direct Unsubsidized Loan and the Federal Direct Graduate PLUS Loan (PLUS). The Federal Direct Lending program is funded by the U.S. federal government and supported by the U.S. Treasury. Complete the FAFSA with New York University's Title IV school code: 002785. Students are reviewed for all types of aid for which they may be eligible.
Domestic students (U.S. citizens and U.S. permanent residents) who are enrolled at least half-time (4.5 or more credits) may be eligible to borrow up to $10,250 in Federal Direct Unsubsidized Loans per semester. Federal Direct Unsubsidized Loans are fixed-interest education loans that do not require credit approval. The loan terms and repayment options are regulated by the federal government. Federal Direct Graduate PLUS Loans are also available to help cover the remaining cost of attendance. Loan approval is contingent upon a credit check.
Changes to Federal Student Loans for 2026-2027
Congress passed the One Big Beautiful Bill Act (H.R.1) in July 2025, which introduced several changes to the William D. Ford Federal Direct Lending Program beginning July 1, 2026. This Act will impact federal student loan borrowing by gradually eliminating the Graduate PLUS Loan program. Graduate PLUS Loans will be phased out starting July 1, 2026, for new borrowers.
Students who have borrowed any type of Direct Loan (Unsubsidized or PLUS) prior to July 1, 2026, and who are currently enrolled in an accredited program, will be permitted to continue borrowing under the existing program for a period of three academic years or the remainder of their anticipated time to complete the program, whichever comes first.
The changes affecting federal student loan types and their annual and aggregate limits will apply to borrowers whose program has a first loan disbursement on or after July 1, 2026. Direct Unsubsidized Loans are limited to $20,500 per year and a $100,000 total aggregate limit for the degree. All federal student loans will be subject to proration if the student is attending less than full-time.
Please visit the University's Office of Financial Aid website for more information. Students can stay updated on this legislation by visiting StudentAid.gov.
- Complete the 2025-2026 FAFSA for eligibility for the Fall 2025, Winter/Spring 2026, and Summer 2026 semesters.
- Complete the 2026-2027 FAFSA for eligibility for the Fall 2026, Winter/Spring 2027, and Summer 2027 semesters.
Note for Fertitta Summer Program: Unlike other students, the Summer 2026 semester is covered by the 2026-2027 FAFSA.
William D. Ford Federal Direct Student Loans
Federal Direct Unsubsidized Loan | Federal Direct Graduate PLUS Loan | |
| Phased out as of 7/1/26 New borrowers will no longer be eligible | ||
| Interest Rate | 7.94% fixed* Effective for loans disbursed between July 1, 2025, and June 30, 2026 | 8.94% fixed** Effective for loans disbursed between July 1, 2025, and June 30, 2026 |
| Origination Fee | 1.057% Effective for loans disbursed on or after October 1st, 2020, and before October 1st, 2025 | 4.228% Effective for loans disbursed on or after October 1st, 2020, and before October 1st, 2025 |
Eligibility | Not need-based. | Loan approval is contingent upon a credit check. |
| In-School Interest | Interest begins to accrue at disbursement. The student may defer the principal, and the interest may be capitalized. | Interest begins to accrue at disbursement. The student may defer the principal, and the interest may be capitalized. |
| Maximum Borrowing Amount | Maximum of $10,250 per semester. | Generous loan limits. Students can borrow up to the full cost of attendance, less the amount of other financial aid received. |
*Based on 10-year Treasury bond yield (4.342%) plus 3.60%. Interest rate not to exceed 9.50%.
** Based on 10-year Treasury bond yield (4.342%) plus 4.60%. Interest rate not to exceed 10.50%.
Please Note: As of July 2012, Federal Direct Subsidized Loans are no longer offered to graduate students. The semester loan limit of $10,250 remains but only includes Federal Direct Unsubsidized Loans.