Students may qualify for Federal Direct Subsidized Loans and Federal Direct Unsubsidized Loans. Direct Subsidized Loans and Direct Unsubsidized Loans are federal student loans offered by the U.S. Department of Education (ED) to help eligible students cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school.
The following chart shows the annual and aggregate limits for subsidized and unsubsidized loans.
Year |
Dependent Students (except students whose parents are unable to obtain PLUS Loans) |
Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans) |
---|---|---|
First-Year Undergraduate Annual Loan Limit |
$5,500-No more than $3,500 of this amount may be in subsidized loans. |
$9,500-No more than $3,500 of this amount may be in subsidized loans. |
Second-Year Undergraduate Annual Loan Limit |
$6,500-No more than $4,500 of this amount may be in subsidized loans. |
$10,500-No more than $4,500 of this amount may be in subsidized loans. |
Third Year and Beyond Undergraduate Annual Loan Limit |
$7,500 per year-No more than $5,500 of this amount may be in subsidized loans. |
$12,500-No more than $5,500 of this amount may be in subsidized loans. |
Graduate or Professional Student Annual Loan Limit |
Not Applicable (all graduate and professional degree students are considered independent). |
$20,500 (unsubsidized only). |
Subsidized and Unsubsidized Aggregate Loan Limit |
$31,000-No more than $23,000 of this amount may be in subsidized loans. |
$57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans. |
To apply for a Direct Loan, you must first complete and submit the Free Application for Federal Student Aid (FAFSA®) form. MCC will use the information from your FAFSA form to determine how much student aid you are eligible to receive. Direct Loans are generally included as part of your financial aid package.
The interest rates for Direct Subsidized Loans and Direct Unsubsidized Loans first disbursed on or after July 1, 2023 and before June 30,2024 are shown in the chart below.
Undergraduate Borrowers |
Graduate or Professional Borrowers |
---|---|
5.50% |
8.05% |