Direct Subsidized and Unsubsidized Loans are part of the Federal Direct Loan Program, which are offered through the U.S. Department of Education. Loans are types of financial aid that will need to be repaid, with interest, after you graduate, leave college or stop attending at least half-time. Most student loans are Direct Loans.

You are considered for these when applying for financial aid and completing the FAFSA (Free Application for Federal Student Aid). You will be required to complete Direct Loan Program requirements to receive any Direct Loan funds. If you are an eligible undergraduate awarded Direct Loans or a graduate or professional student awarded an Unsubsidized Direct Loan, it will appear on your financial aid award notification, as an offer.

If you are not eligible for Direct Loans or need additional resources to cover college costs, you may want to apply separately for a supplemental loan through the federal government or a private lender. To apply for a private loan, please click here. Be sure to select the Program that is more appropriate based on your current enrollment status. 

If you have either previously reduced or denied your loans and want to request additional Federal Student loans or ask that they are re-offered to you, please contact the Financial Aid Office to make this request. 

Differences between Subsidized and Unsubsidized Loans

Direct Subsidized Loans are offered to undergraduate students with financial need. They have a low fixed interest rate and do not accrue interest while the student is enrolled at least half-time in a degree program. Students do not make payments until six months after graduating or drop below half-time. Direct Subsidized Loans are available only to undergraduate borrowers.

Direct Unsubsidized Loans are available to undergraduate and graduate students with or without financial need. These loans accrue interest while the student is in school and during deferments and grace periods. Students may defer interest payments until after they graduate, but doing so will result in a higher loan payment of the life of the loan.

Interest rates on all Federal Student Loans are announced by the U.S. Department of Education around May of each year, which then becomes effective on July 1. Loan origination fees are based on federal sequestration legislation, which are announced around May of each year, and becomes effective on October 1.

Eligibility, Loan Terms, and Requirements

Subsidized Loan Eligibility Requirements:

To receive Federal Direct Loans, students must:

• Complete the Free Application for Federal Student Aid (FAFSA) for the applicable academic year;
• Be admitted to and enrolled in an eligible degree-seeking program;
• Meet federal enrollment requirements, including enrollment at least half-time;
• Be enrolled in coursework that applies toward completion of the student’s eligible program of study during the applicable payment period;
• Maintain Satisfactory Academic Progress (SAP);
• Complete required federal loan requirements; and
• Meet all other federal student aid eligibility requirements.

Students are not eligible for federal student loans if they:

• Are in default on a federal student loan;
• Owe repayment on a federal grant or loan overpayment;
• Have unresolved federal eligibility restrictions; or
• Have a Total and Permanent Disability (TPD) discharge that has not met federal requirements for new borrowing eligibility.

Unsubsidized Eligibility Requirements:

To receive a Federal Direct Unsubsidized Loan, graduate students must:

• Be enrolled at least half-time in an eligible degree-seeking graduate program;
• Complete the Free Application for Federal Student Aid (FAFSA) each academic year;
• Meet federal Title IV eligibility requirements;
• Maintain Satisfactory Academic Progress (SAP);
• Complete all required federal loan requirements; and
• Have remaining eligibility under federal loan limits.

Interest Rates and Loan Fees

Interest rates for Federal Direct Loans are established annually by the U.S. Department of Education.

For loans first disbursed on or after July 1, 2026, and before July 1, 2027:

• Federal Direct Subsidized Loans (Undergraduate): 6.52%
• Federal Direct Unsubsidized Loans (Undergraduate): 6.52%
• Federal Direct Unsubsidized Loans (Graduate/Professional): 8.07%
• Loan origination fee 1.057% (effective October 1, 2024)

Federal Direct Loans include an origination fee deducted proportionally from each loan disbursement.

Interest rates and loan fees are subject to change based on federal regulations.

Loan Limits and Terms

Federal Direct Unsubsidized Loan limits are established by federal regulations. 

For loans first disbursed on or after July 1, 2026, and before July 1, 2027:

Undergraduate:

Dependent Undergraduate Students

Independent Undergraduate Students

Graduate

• Annual Loan Limit: Up to $20,500 per academic year.
• Aggregate Loan Limit: Up to $100,000 for graduate study. Undergraduate borrowing is not included in this limit.

Professional

• Annual Loan Limit: Up to $50,000 per academic year. *Subject to change*
• Aggregate Loan Limit: Up to $200,000 minus any loans as a graduate student. 
• Please contact the financial aid office regarding professional unsubsidized loans

Students enrolled less than full-time may have their annual loan eligibility adjusted through federal enrollment proration requirements.

Additional information/requirements:

• First-time Direct Loan borrowers must complete an online Direct Loan Master Promissory Note before receiving their loan funds
• First-time borrowers at Gallaudet University must complete Direct Loan Entrance Counseling
• Exit Counseling is required when a student graduates or drops below half-time

Important Information for Current and Prospective Students

Standard of Reduction

What Is Changing?

If you are enrolled less than full-time, your Federal Direct Loan amount may be reduced.

Your loan amount may depend on the number of eligible credits you take during the Fall and Spring semesters. Your Financial Aid Counselor can review your situation and explain how this may affect you.

If you received a federal student loan for your current program before July 1, 2026, different loan limits may apply. We will review your record and let you know if this applies to you.

Enrollment Levels

• Less than half-time: Not eligible for federal loans.
• Half-time: At least 6 credits required to receive federal loans.
• Full-time (undergraduate): 12 or more credits per semester.
• Full-time (graduate): 9 or more credits per semester.

For more information on the Standard of Reduction regulations, visit here.

What You Need to Know

The Federal Graduate PLUS Loan program will be eliminated for new borrowers starting July 1, 2026. However, if you are already enrolled in a graduate program and have received a federal direct loan disbursement before this date, you may qualify for the Graduate PLUS Legacy Provision, which allows continued borrowing for up to three additional years or until you complete your program—whichever comes first.

If You’ve Already Requested a Graduate PLUS Loan

• You do not need to take any additional steps at this time.
• Be aware of situations that could end your eligibility, such as:
  • Changing your academic program
  • Transferring to another institution
  • Withdrawing from your graduate program

For information on maintaining eligibility, see Graduate PLUS Legacy Provision below.

Loan Deadlines

Key Reminders

• Minimum enrollment for loan eligibility: 6 credits per term
• Deadlines matter—processing may take up to two weeks
• For questions or support: Click to reveal email

Additional information/requirements:

• First-time Direct Loan borrowers must complete an online Direct Loan Master Promissory Note before receiving their loan funds
• First-time borrowers at Gallaudet University must complete Direct Loan Entrance Counseling
• Exit Counseling is required when a student graduates or drops below half-time

Completing Your Loan Requirements

To receive your Direct Subsidized or Unsubsidized Loan, you must complete two Direct Loan Program requirements. You must sign a Master Promissory Note (MPN) and complete entrance counseling online at https://studentaid.gov/.

Master Promissory Note (MPN)

The Master Promissory Note (MPN) authorizes the university to credit the loan funds to your Gallaudet student account for multiple years. MPNs are generally good for 10 years, so most students do not need to complete them more than once during their time at Gallaudet University unless you have been out of school for one year or more.

If you sign an MPN and do not want loans in future years, you must decline the loan after receiving your offer notification in Workday.

The borrower completes the MPN. Parents complete an MPN for a Direct PLUS Loan, graduate/professional students complete an MPN for Direct Grad PLUS Loans, and students complete an MPN for a Direct Loan (subsidized or unsubsidized).

Before completing the MPN, collect this information:

• A U.S. Department of Education FSA ID to complete the promissory note on the web. If you do not already have an FSA ID, apply for one immediately. It takes up to 3 business days to receive your FSA ID by email and 7-10 business days to receive it by regular mail. If you already have an FSA ID, but you cannot locate it, visit https://studentaid.gov/fsa-id/sign-in/landing. Please note, your FSA ID is NOT the same as the Data Release Number (DRN) number shown on your FAFSA Submission Summary (FSS).
• Your Social Security Number
• Your permanent address and telephone number
• Your driver’s license number
• Names, addresses, and phone numbers for two references

Complete your Direct Loan MPN online at https://studentaid.gov/mpn/. Sign in under Manage My Direct Loan. (If you are a new borrower, follow the instructions for applying for an FSA ID.) After signing in, select Complete the Master Promissory Note. Select the correct type of loan note.

*Be sure to select the correct name and address for Gallaudet University:

Gallaudet University, 800 Florida Ave NE, Washington, D.C. 20002

Entrance Counseling

If you are a first-time Direct Loan borrower at Gallaudet University, you must complete Direct Loan Entrance Counseling on the U.S. Department of Education’s https://studentaid.gov/entrance-counseling/ website. This interactive counseling session and quiz help students develop budgets for managing educational expenses and understanding their loan responsibilities. You must complete the counseling before your loan funds can be disbursed to you.

Exit Counseling

This is required for Direct Loan student borrowers who are graduating or dropping below half-time enrollment. This counseling session helps borrowers understand their rights and responsibilities in repayment and helps them choose a repayment plan. You must use your Department of Education FSA ID to access this counseling session. To complete the Exit Counseling session, go to the https://studentaid.gov/exit-counseling/ website. Click the “Complete Counseling” link and follow the link to “Exit Counseling” to begin.

Receiving Your Loan Funds

To receive your loan funds, you must have signed all your loan documents and be enrolled at least half-time.

If you want to reduce or decline a loan AFTER you have already received the funds, contact the Financial Aid Office right away. (Students must personally decline or reduce their awards; parents cannot do this for a student.) Parents of dependent students who have a federal PLUS Loan may send an email or letter to our office asking to have the loan reduced or canceled.

Sample Repayment Schedule – 5% Interest

Total Amount Borrowed	Number of Monthly Payments	Amount of Monthly Payments	Amount of Final Payment	Total Interest Paid	Total Amount Repaid
$500	17	$10.00	$9.32	$19.32	$519.32
$1,000<	35	$30.00	$28.85	$78.85	$1,078.85
$1,500	56	$30.00	$5.50	$185.50	$1,685.50<
$2,500	102	$30.00	$17.34	$577.34	$3,077.34
$4,000<	119	$42.50	$30.97	$1,088.47	$5,088.47
$6,000	119	$63.75	$46.66	$1,632.91	7,632.90
$12,000	119	$128.00	$16.01	$3,248.01	$15,248.01

Sample Repayment Schedule – 8% Interest

Total Amount Borrowed	Number of Monthly Payments	Amount of Monthly Payments	Total Interest Paid	Total Amount Repaid
$1,000	18	$59.14	$64.52	$1,064.52
$2,000	36	$62.67	$256.22	$2,256.22
$3,000	72	$52.60	$787.18	$3,787.18
$4,000	108	$52.08	$1,624.08	$5,624.08
$6,000	120	$72.80	$2,735.59	$8,735.59
$7,000	120	$84.93	$3,191.52	$10,191.52
$9,000	120	$109.19	$4,103.38	$13,103.38
$10,000	120	$121.33	$4,559.31	$14,559.31

Private Loan Programs:

Private loans are provided by banks, credit unions and other lenders to help bridge the gap between the financial aid students receive and the total cost of attendance. It’s recommended that students have explored all financial aid options before requesting a private loan. Private loans are not subsidized, meaning they incur interest while the student is in school. To apply for a private loan, visit https://www.elmselect.com. All applications for private loans must be submitted by the end of November for Fall semester and the end of April for Spring. Qualifications and guidelines will vary among alternative loan providers.

Once the application is submitted, the lender will review your application to determine if you qualify. They will contact you regarding the outcome of the private loan application. If your private loan is approved, the lender will notify the Financial Aid Office at Gallaudet. The Financial Aid Office will then review your account and if you meet the eligibility requirements, your loan will be certified. Please note, the amount requested may be different than the amount certified by the Financial Aid Office if it’s greater than the amount remaining in your cost of attendance. Once certified, it will take at least 14 business days for the loan monies to arrive at Gallaudet University as required by law (Section 155 of the Higher Education Act of 1965 and Section 128(e)(3) of the Truth in Lending Act).