The Federal Direct Loan Program
Students who apply for financial aid via the FAFSA are reviewed for all types of aid for which they may be eligible. 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 Direct Graduate PLUS Loan. The Federal Direct Lending program is funded by the U.S. federal government and supported by the U.S. Treasury.
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.
Once a student completes the 2024-2025 FAFSA, the Stern Graduate Financial Aid Office reviews financial aid eligibility for the Fall 2024, Winter/Spring 2025, and Summer 2025 semesters.
William D. Ford Federal Direct Student Loans
Federal Direct Unsubsidized Loan | Federal Direct Graduate PLUS Loan | |
| Interest Rate | 8.08% fixed* Effective for loans disbursed between July 1, 2024, and June 30, 2025 | 9.08% fixed** Effective for loans disbursed between July 1, 2024, and June 30, 2025 |
| 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 (4.483%) plus 3.60%. Interest rate not to exceed 9.50%.
** Based on 10-year Treasury bond yield (4.483%) 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.