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
Dependent Students
$3,500 subsidized, $2,000 unsubsidized. Combined total: $5,500
Independent Students (or Dependent undergraduate students whose parents are denied PLUS Loan)
$3,500 subsidized, $6,000 unsubsidized. Combined total: $9,500
Second-Year Undergraduate
Dependent Students
$4,500 subsidized, $2,000 unsubsidized. Combined total: $6,500
Independent Students (or Dependent undergraduate students whose parents are denied PLUS Loan)
$4,500 subsidized, $6,000 unsubsidized. Combined total: $10,500
Graduate
Dependent Students
N/A All graduate and professional students are considered independent.
Independent Students (or Dependent undergraduate students whose parents are denied PLUS Loan)
$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
Disbursal Date
On or after July 1, 2022 and before July 1, 2023
On or after July 1, 2023 and before July 1, 2024
Interest Rate
4.99%
5.50%
Direct Unsubsidized Loans for Graduate and Professional Students
Disbursal Date
On or after July 1, 2022 and before July 1, 2023
On or after July 1, 2023 and before July 1, 2024
Interest Rate
6.54%
7.05%
Direct PLUS Loans for Parents of Dependent Undergraduate Students and for Graduate or Professional Students
Disbursal Date
On or after July 1, 2022 and before July 1, 2023
On or after July 1, 2023 and before July 1, 2024
Interest Rate
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)
Disbursal Date
On or after October 1, 2020 and before October 1, 2023
Loan Fee Percent
4.228%
Direct Subsidized Loans and Direct Unsubsidized Loans
Disbursal Date
On or after October 1, 2020 and before October 1, 2023
Loan Fee Percent
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)
Subsidized
$23,000
Unsubsidized
$8,000
Combined
$31,000
Undergraduate (Independent or Dependent with PLUS Loan Denial)
Subsidized
$23,000
Unsubsidized
$34,500
Combined
$57,500
Graduate
Subsidized
$65,500**
Unsubsidized
$73,000
Combined
$138,500

**Includes undergraduate Stafford/Direct Loans