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What is a direct subsidized loans?

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Unsubsidized Loans are loans for both undergraduate and graduate students that are not based on financial need. Eligibility is determined by your cost of attendance minus other financial aid (such as grants or scholarships). Interest is charged during in-school, deferment, and grace periods. Unlike a subsidized loan, you are responsible for the interest from the time the unsubsidized loan is disbursed until it’s paid in full. You can choose to pay the interest or allow it to accrue (accumulate) and be capitalized (that is, added to the principal amount of your loan). Capitalizing the interest will increase the amount you have to repay. See http://www.sfa.ufl.edu/debt-management/“Debt Management & Student Loans” for more important information on the capitalization of interest.

More information regarding student loans, program requirements, and managing repayment can be found at https://studentaid.govStudentAid.gov.

The maximum amount you can borrow each academic year depends on your grade level and dependency status. See the chart below for annual and aggregate (lifetime) borrowing limits. You may not be eligible to borrow the full annual loan amount because of your expected family contribution or the amount of other financial aid you are receiving. To see examples of how your Subsidized or Unsubsidized award amount will be determined. Direct loan eligibility and loan request amount must be greater than $200 for a loan to be processed.

If you are a first-time borrower on or after July 1, 2013 and before July 1, 2021, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. This time limit does not apply to Direct Unsubsidized Loans or Direct PLUS Loans. If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. See your financial aid adviser or https://studentaid.gov/StudentAid.govhttps://studentaid.ed.gov/types/loans/subsidized-unsubsidized#eligibility-time-limit for more information.

The amount you can borrow through the Federal Direct Loan Program is determined by your dependency status and classification in college. The annual and aggregate loan limits are listed in the charts below.

* Some professional students may be eligible for increased unsubsidized loan limits. Contact your adviser to determine if you are eligible.

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