Federal Direct Subsidized and Unsubsidized Loans for Undergraduates|Financial Aid

Direct Subsidized Loan

• Available to undergraduate students only
• Awarded based on financial need determined by the FAFSA
• Student must be enrolled at least half time
• Student must be meeting Satisfactory Academic Progress (SAP) Standards.
• Student cannot be in default on a Federal Student Loan or owe an overpayment on a Federal Student loan or grant.
• No interest accrues while student is enrolled at least half time
• No repayment required while student is enrolled at least half time
• One six-month grace period after the student is no longer enrolled half time before repayment begins
• Standard repayment is 10 years

Direct Unsubsidized Loan

• Student must be enrolled at least half time
• Student must be meeting Satisfactory Academic Progress (SAP) Standards.
• Student cannot be in default on a Federal Student Loan or owe an overpayment on a Federal Student loan or grant.
• Interest starts accruing at the time of disbursement
• No repayment required while student is enrolled at least half time
• One six-month grace period after the student is no longer enrolled half time before repayment begins
• Standard repayment is 10 years

Annual Maximums

NEW starting for 2026-27 - Annual loan amounts will be adjusted based upon student’s actual enrollment for the academic year. Students enrolled/completing less than 24 credits for the academic year (summer/fall/spring) may have their loan amount reduced.

Independent undergraduate students (per the FAFSA) and undergraduate student's parents who have been denied the Federal Parent PLUS loan can borrow an additional Direct Unsubsidized Loan amount up to $4,000 for Freshman and Sophomore years, and $5,000 after that.

*If a student’s grade level increases during the academic year, please contact the Financial Aid Office in writing (finaid@carrollu.edu) and request the additional loan funds.

Cumulative Maximum Total Debt

Interest Rates

Fees

Fees are deducted from the Direct Subsidized and Unsubsidized loan proceeds when they are disbursed.

Applying for Direct Subsidized and Unsubsidized Loans

1. Complete the Free Application for Federal Student Aid (FAFSA) at studentaid.gov/fafsa
2. Receive your final financial aid offer from Carroll
3. Submit your award - Accept/Reject/Modify your Federal Loans
4. First time borrowers at Carroll need to complete your Direct Master Promissory Note at studentaid.gov
   • Under the Grants and Loans dropdown, select "Master Promissory Note (MPN)"
   • Login by clicking the blue "Log In to Start" button next to "I'm an Undergraduate Student"
5. First time borrowers at Carroll need to complete Entrance Counseling at studentaid.gov
   • The Federal Government requires that all first time Federal Direct Loan borrowers complete an entrance counseling session before they receive any loan funds. This session is designed to provide the borrower with important information about the Federal Direct Loan program, including your rights and responsibilities as a borrower.
   • Under the Grants and Loans dropdown, select "Loan Entrance Counseling"
   • Login clicking the blue "Log In to Start" button next to the "I am an Undergraduate Student"

Exit counseling

• Federal regulations require students to complete this once you graduate from Carroll or your enrollment drops below half time status
• Provides the borrower with important information regarding your rights and responsibilities as a borrower.
• Assists you on how to manage repaying your student loans and what you can expect
• Complete online at studentaid.gov under the Loan Repayment dropdown.