Federal Direct Loans

New Undergraduate and Continuing Undergraduate

Federal Direct Subsidized Loan

The Federal Direct Subsidized Loan has more favorable terms to help out students with financial need. The U.S. Department of Education pays the interest on a Direct Subsidized Loan while a student is in school at least half-time, for the first six months after a student leaves school (referred to as a grace period), and during a period of deferment (a postponement of loan payments). Direct Subsidized Loans are available only to undergraduate students who have financial need.

Federal Direct Unsubsidized Loan

For a Federal Direct Unsubsidized Loan, the student is responsible for paying the interest on the loan during all periods. If a student chooses not to pay the interest while in school or during grace periods, deferment or forbearance periods, the interest will accrue (accumulate) and be capitalized (interest will be added to the principal amount of your loan). Federal Direct Unsubsidized Loans are available to both undergraduate students, graduate students or professional degree students. Students are not required to show financial need to receive a Federal Direct Unsubsidized Loan.

Borrowing Amounts and Loan Limits

Annual Limits

Grade Level (credits)
	Base Amount*	Additional Unsubsidized		Total (Independent)
	Base Amount*	Dependent Students	Independent Students	Total (Independent)
Freshmen (0-29)	$3,500	$2,000	$6,000	$5,500 ($9,500)
Sophomores (30-59)	$4,500	$2,000	$6,000	$6,500 ($10,500)
Juniors (60-89)	$5,500	$2,000	$7,000	$7,500 ($12,500)
Seniors (90+)	$5,500	$2,000	$7,000	$7,500 ($12,500)

Undergraduate students who do not qualify for need based assistance may be offered all or portion of their Base Amount in an Unsubsidized loan.

In addition to the annual limits, students are also subject to aggregate (total lifetime) limits. The following are the aggregate limits for undergraduate students. Note that loans borrowed for graduate programs are not included in the total undergraduate loans borrowed.

Undergraduate Aggregate Federal Loan Limits

Dependency Status	Maximum Subsidized	Total Limit
Dependent Undergraduate	$23,000	$31,000
Independent Undergraduate and dependent students with PLUS denial	$23,000	$57,500

150% Direct Subsidized Loan Limits

New borrowers after July 1, 2013 are subject to limits on Subsidized loans that are relative to the length of the student’s academic program. For example a student in a 4 year bachelor’s degree program has a maximum of 6 years (150% of the program length) of subsidized loan eligibility. If after the 150% point in time, the student is still in school, the interest subsidy will end for all outstanding subsidized loans disbursed after July 1, 2013. Although repayment does not begin when a student is enrolled at least half time, the student will be responsible for interest accumulation from that point forward. For more information about this limit and its impacts please refer to the following: https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized#how-much-can-i-borrow.

Federal Loan Interest Rates

Please see the Department of Education’s website to view all federal loan interest rates for the Federal Direct Subsidized, Unsubsidized, Parent PLUS and Graduate PLUS Loan programs.

Entrance Counseling / Promissory Note

All first-time loan borrowers and students who have not borrowed a Federal Direct Subsidized or Unsubsidized Loan within the last 10 years will be required to complete a Subsidized/Unsubsidized MPN (Master Promissory Note) on the Federal Student Loans website before the loan funds will disburse to the student's University account. Additionally, Entrance Counseling must also be submitted on the above website if not previously completed.

Exit Counseling

Students who have borrowed Federal Direct Loans at GW are required to complete Exit Counseling when they graduate, leave the University or drop below half-time enrollment. Exit Counseling provides students with pertinent information regarding their rights and responsibilities as a student loan borrower, knowledge on repayment options and provisions, details on deferment and forbearance and useful financial planning tools to manage your student loans successfully. Exit Counseling can be completed on the Federal Student Loan website.

Graduate

Federal Direct Unsubsidized Loan

Borrowing Amounts and Loan Limits

As of July 1, 2026, most graduate students who are continuing in the same degree and have had a Federal Direct Unsubsidized Loan disburse for that same degree may borrow up to $20,500 in Federal Direct Unsubsidized Loan funds per academic year (every fall, spring, and summer) dependent upon their enrollment. The Federal Subsidized and Unsubsidized Loan Aggregate Maximum for these legacy graduate students, including those Federal Subsidized and Unsubsidized Loans disbursed for use towards undergraduate study, is $138,500. Students who feel they need more than the $20,500 maximum may wish to seek a Federal Direct Graduate PLUS Loan or private alternative loan to further finance their educational costs.

Graduate Programs Eligible for Higher Loan Limits

Students working on a graduate degree in Public Health or Health Administration, or a Doctoral Degree in Clinical Psychology may have higher annual and aggregate Federal Direct Loan limits of up to $37,167 per academic year with an Aggregate Maximum of $224,000. Annual eligibility is determined based on the number of credits for which the student plans to enroll and the total number of months the student is registered and borrowing loan funds. Students enrolled in up to nine months of instruction time may borrow up to $33,000. For each additional month of enrollment during the summer semester, they may borrow an extra $1,389. Therefore, a student enrolled for the Fall and Spring terms and all three months during the summer semester is eligible to borrow up to $37,167.

Graduate students who are considered legacy students under the above provisions will lose their status if they take a Leave of Absence or otherwise cease continuous enrollment or change their program of study. Instead, their Federal Direct Loan eligibility will be determined using the information below.

Any student who did not have a Federal Direct Loan disburse to their student account at GW for their current degree before July 1, 2026, may borrow up to $20,500 in Federal Direct Unsubsidized Loan funding for each academic year. Please note, new graduate student borrowers are not eligible to receive Federal Direct Graduate PLUS Loans but may apply for private alternative loans to help with educational costs. New borrowers may receive up to an Aggregate Maximum of $100,000 in all graduate level loans only, and have a Lifetime Limit of $257,500 that includes all previously borrowed undergraduate and graduate level Subsidized, Unsubsidized, and Graduate PLUS loans that have disbursed, been repaid, canceled, discharged, or forgiven.

New Clinical Psychology students working on a PsyD or PhD may borrow up to $50,000 per academic year with a $200,000 graduate level Aggregate Maximum and a $257,500 Lifetime Limit.

Federal Loan Interest Rates

Please see the Department of Education’s website to view all federal loan interest rates for the Federal Direct Subsidized, Unsubsidized, Parent PLUS and Graduate PLUS Loan programs.

Entrance Counseling / Promissory Note

Exit Counseling