Federal Direct Subsidized and Unsubsidized Loans|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

$5,500
Dependent Undergrad Freshman
1-27 credits earned
$6,500
Dependent Undergrad Sophomore
28-59 credits earned
$7,500
Dependent Undergrad Junior and above
60+ credits earned
$20,500
Graduate Students
n/a

Independent students (per the FAFSA) and 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

The cumulative maximum for undergraduate students is $31,000 and $57,500 but no more than $23,000 can come from subsidized loans.

$31,000
Dependent Undergraduate Students
$57,500
Independent Undergraduate Students
$138,500
Graduate Students (includes amounts borrowed as undergrad students)

Interest Rates

5.5%
For Undergraduate Direct Subsidized and Unsubsidized loans first disbursed between July 1, 2023 and June 30, 2024
4.99%
For Undergraduate Direct Subsidized and Unsubsidized loans first disbursed between July 1, 2022 and June 30, 2023
7.05%
For Graduate Direct Unsubsidized loans first disbursed between July 1, 2023 and June 30, 2024
6.54%
For Graduate Direct Unsubsidized loans first disbursed between July 1, 2022 and June 30, 2023

Fees

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

1.057%
For loans first disbursed after October 1, 2020 and before October 1, 2023 (For example, on a $5500 loan, $58 will be kept as a loan fee and therefore $5,442 will be credited to the students account when it is disbursed to the school.)

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 Complete Aid Process dropdown, select "MPN for Undergraduate Students"
    • Login clicking the blue "Log In to Start" button
    • Once logged in, click the blue "Start" button to complete your Master Promissory Note
  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 Complete Aid Process dropdown, select "Complete Entrance Counseling"
    • Login clicking the blue "Log In to Start" button next to the "I am an Undergraduate Student"
    • Once logged in, click the blue "Start" button and complete your undergraduate Entrance Counseling

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 Manage Loans dropdown.
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