Federal Direct Loans
The William D. Ford Federal Direct Loan (Direct Loan) Program is a federal student loan program under which eligible students and/or parents borrow directly from the U.S. Department of Education at participating schools. If you apply for federal student aid, you may be offered one or more of these loans as part of your financial aid award. A loan is money that you or your parents (if applicable) must pay back with interest. If you do decide to borrow one of the federal loans listed make sure you understand the terms and conditions of the loans.
For information on disbursement, see the button below:
Receiving Aid
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Direct Subsidized Loan
This loan program provides low interest loans to students who are enrolled at least half-time in a degree or teacher certification program and have a “demonstrated need” based upon the information provided as a result of the completion of their Free Application for Federal Student Aid (FAFSA). Learn more about the time limitation on direct subsidized loan eligibility for first time borrowers. No interest accrues while in school at least half-time. Borrowers are assessed an origination/guarantee fee which is deducted prior to the disbursement of the loan to HCU. Repayment begins six months after dropping below half-time and interest will begin to accrue during the grace period.
Annual limits:
- $3500 – Freshman
- $4500 – Sophomore
- $5500 – Junior/Senior
Aggregate limits:
- Undergraduate Dependent Students: $31,000 (no more than $23,000 of which can be subsidized).
- Undergraduate Independent Students: $57,500 (no more than $23,000 of which can be subsidized).
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Unsubsidized Loan for Dependent Students
This loan is available to dependent students who are enrolled at least half-time in a degree or teacher certification program and do not demonstrate a financial need based upon the information provided as a result of the completion of their Free Application for Federal Student Aid (FAFSA). Applicants must seek aid from the Direct Subsidized Loan program before receiving loans from the Direct Unsubsidized Loan. Borrowers are assessed an origination/guarantee fee which is deducted prior to the disbursement of the loan to HCU. Repayment begins six months after dropping below half-time. The student is responsible for the interest that accrues on the Direct Unsubsidized Loan during in-school and deferment periods.
Undergraduate students are eligible for dependent level loan amounts based on grade level minus any Subsidized loans received. See chart for breakdown.
Grade Level
Total between Subsidized and Unsubsidized
Maximum subsidized
Freshman
Total between Subsidized and Unsubsidized: $5,500
Maximum subsidized: $3,500
Sophomore
Total between Subsidized and Unsubsidized: $6,500
Maximum subsidized: $4,500
Junior/Senior
Total between Subsidized and Unsubsidized: $7,500
Maximum subsidized: $5,500
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Unsubsidized Loan for Independent Students
This loan is available to independent undergraduate and graduate students who are enrolled at least half-time in a degree or teacher certification program who do not demonstrate a financial need based upon the information provided as a result of the completion of their Free Application for Federal Student Aid (FAFSA). The annual limit is dependent on your grade level and Subsidized loan eligibility (Subsidized Loans are available for Undergraduate students only). Graduate students may borrow up to $20,500 annually, not to exceed the cost of education. See chart for breakdown.
Grade Level
Total between Subsidized and Unsubsidized
Maximum subsidized
Freshman
Total between Subsidized and Unsubsidized:: $9,500
Maximum subsidized: $3,500
Sophomore
Total between Subsidized and Unsubsidized: $10,500
Maximum subsidized: $4,500
Junior/Senior
Total between Subsidized and Unsubsidized: $12,500
Maximum subsidized: $5,500
Graduate
Total between Subsidized and Unsubsidized: *Unsubsidized only
Maximum subsidized: $20,500
The subsidized and unsubsidized Direct Loan interest rates are variable and adjusted on an annual basis every July 1, but will not exceed 8.25%. Borrowers are assessed an origination/guarantee fee which is deducted prior to the disbursement of the loan to HBU. Repayment begins six months after dropping below half-time. The student is responsible for the interest that accrues on the Direct Unsubsidized Loan during in-school and deferment periods.
The subsidized and unsubsidized Direct Loan interest rates are variable and adjusted on an annual basis every July 1, but will not exceed 8.25%. Borrowers are assessed an origination/guarantee fee which is deducted prior to the disbursement of the loan to HCU. Repayment begins six months after dropping below half-time. The student is responsible for the interest that accrues on the Direct Unsubsidized Loan during in-school and deferment periods.