The Federal Direct Student Loan Program includes both subsidized loans and unsubsidized loans. Subsidized loans are awarded based on financial need. Unsubsidized Loans are not based on financial need.
The other main difference between the two loans is interest accrued. With subsidized loans, there is no interest charged to the student during the in-school or six-month grace period, which begins when the student ceases at least half-time enrollment. With unsubsidized loans, the borrower is charged interest from the time the loan is disbursed until it is paid in full. The interest can be deferred while the student is enrolled at least half time, but will be capitalized (added to the principal) when repayment begins.
| Academic Level based on earned hours | Dependent Student | Independent Student |
|---|---|---|
| First-year - (0-29 hours) | $5,500 |
$9,500 |
| Second-year - (30-59 hours) | $6,500 |
$10,500 |
| Third-, fourth-year (>60 hours) | $7,500 |
$12,500 |
| Undergraduate Cumulative | $31,000 |
$57,500 |
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