Federal Direct Loans

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 are enrolled 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

Year Dependent Students Independent Students
(or Dependent undergraduate students whose parents
are denied PLUS Loan)
First-Year Undergraduate $3,500 subsidized, $2,000 unsubsidized.
Combined total: $5,500		 $3,500 subsidized, $6,000 unsubsidized. Combined
total: $9,500
Second-Year Undergraduate $4,500 subsidized, $2,000 unsubsidized.
Combined total: $6,500		 $4,500 subsidized, $6,000 unsubsidized. Combined
total: $10,500
Third-Year and Beyond Undergraduate $5,500 subsidized, $2,000 unsubsidized.
Combined total: $7,500		 $5,500 subsidized, $7,000 unsubsidized. Combined
total: $12,500
Graduate N/A
All graduate and professional students are
considered independent.		 $20,500 unsubsidized only (Ineligible for subsidized)

 

Interest Rates

Loan Type Disbursal Date Interest Rate
Direct Subsidized Loans and Direct Unsubsidized Loans for Undergraduate Students On or after July 1, 2022 and before July 1, 2023

On or after July 1, 2023 and before July 1, 2024

 4.99%

5.50%
Direct Unsubsidized Loans for Graduate and Professional Students On or after July 1, 2022 and before July 1, 2023

On or after July 1, 2023 and before July 1, 2024

 6.54%

7.05%
Direct PLUS Loans for Parents of Dependent Undergraduate Students and for Graduate
or Professional Students		 On or after July 1, 2022 and before July 1, 2023

On or after July 1, 2023 and before July 1, 2024

 7.54%

8.05%

The interest rate caps for these loans are 8.25%, 9.5%, and 10.5%, respectively. The interest rate for Direct Consolidation Loans remains the weighted average of the interest rates on the loans included in the consolidation, rounded to the next higher one-eighth of one percent. There is no maximum interest rate for Direct Consolidation Loans.

Origination Fee

*Subject to change Oct 1

Loan Type Disbursal Date Loan Fee Percent
Direct PLUS Loans (Parent and Graduate or Professional Students) On or after October 1, 2020 and before October 1, 2023 4.228%
Direct Subsidized Loans and Direct Unsubsidized Loans On or after October 1, 2020 and before October 1, 2023 1.057%

An origination fee is a percentage of your loan amount charged by the lender for the processing of your loan. Federal student loans have an origination fee; therefore, the amount you may receive as a disbursement may be slightly lower than the amount you accept.

Although some private loans do not have origination fees, federal loans generally have a lower interest rate and are less costly overall.

Aggregate Loan Limits

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

**Includes undergraduate Stafford/Direct Loans