Federal Direct Loan

The Federal Direct Loan is a low-interest student loan with flexible repayment options. These loans can be either subsidized or unsubsidized.

Subsidized loans are offered to students who are eligible for need-based financial assistance. No interest is charged on these loans until you graduate, withdraw or enroll in less than half time. Interest accrues following a six-month grace period.

Unsubsidized loans are available to those who do not qualify for need-based financial assistance. Unlike subsidized loans, interest accrues on these loans while students are still in school. You have the option to pay the interest as you attend school or to wait for the repayment period to begin.

To be eligible for a Federal Direct Loan, you must be a U.S. citizen or permanent resident, not have previous defaults on a federal loan, be enrolled or plan to enroll at least half-time, and maintain satisfactory academic progress. For more information, visit the U.S. Department of Education’s website

How to apply

There are four required steps to apply for a Federal Direct Loan. Make sure your Free Application for Federal Student Aid (FAFSA) is sent to Furman. Furman’s Title IV code is 003434.

Annual Loan Limits

Undergraduate Subsidized Unsubsidized Combined
Freshman $3,500 $2,000 $5,500
Sophomore $4,500 $2,000 $6,500
Junior $5,500 $2,000 $7,500
Senior $5,500 $2,000 $7,500
Graduate $0 $20,500 $20,500

Interest Rates

Disbursed between July 1, 2016 and July 1, 2017

Undergraduate Subsidized Unsubsidized
Freshman 4.45% 4.45%
Sophomore 4.45% 4.45%
Junior 4.45% 4.45%
Senior 4.45% 4.45%
Graduate n/a 4.45%

Disbursed between July 1, 2015 and July 1, 2016

Undergraduate Subsidized Unsubsidized
Freshman 4.29% 4.29%
Sophomore 4.29% 4.29%
Junior 4.29% 4.29%
Senior 4.29% 4.29%
Graduate n/a 6.00%

Originiation Fee

Undergraduate Subsidized Unsubsidized
Freshman 1.069% 1.069%
Sophomore 1.069% 1.069%
Junior 1.069% 1.069%
Senior 1.069% 1.069%
Parent PLUS 4.276%​ 4.276%​
Graduate n/a 1.069%

Aggregate Loan Limits

Subsidized Unsubsidized Combined
Undergraduate (Dependent) $23,000 $8,000 $31,000
Undergraduate (Independent with PLUS Loan Denial) $23,000 $34,500 $57,500
Graduate $65,500* $73,000 $138,500

*Includes undergraduate Stafford/Direct Loans