Federal Student Loans: learn the benefits

Smart Borrowing Begins with making informed choices


A college education is one of the most important investments you can make—but how you pay for it matters. Federal student loans provide a reliable and affordable way to finance your education. Unlike private loans, federal loans offer benefits designed to support students and families.

Why Choose Federal Loans?

Lower, fixed interest rates: Rates set at the time you borrow and no surprise increases.
No credit check or approval needed: If you meet FAFSA eligibility criteria, they will be offered.
Subsidized loans: If eligible for this type of loan, no interest accrues while you're in school.
Flexible repayment options: Includes income-driven plans.
Loan forgiveness programs: Possible debt cancellation for qualifying borrowers.
Borrower protections: Deferment, forbearance, and repayment assistance available.

💡 Guaranteed Funding: As long as you submit the FAFSA, enroll at least half-time in an eligible program, and have not reached your borrowing limits, you will be offered federal student loans—no credit check required! 

FEDERAL STUDENT LOANS BY PROGRAM LEVEL

📚 AWARD TYPES, Annual AMOUNTS & Lifetime Limits by program
 

UNDERGRADUATE & POST-BACCALAUREATE CERTIFICATION PROGRAMS

 🎓 Loan Types & Eligibility 

Loan Type Eligible Programs Who Can Borrow?  Rate & Fee  Key Benefit
🎁 Subsidized

Undergraduate Programs 

(Degree-seeking)

Requires financial need   

Cost of Attendance (COA)
− Student Aid Index (SAI)
− All Gift Aid 
= Remaining need →

If positive, eligibility is up to grade level limit but not to exceed remaining need

6.53% Fixed 

1.057% 

Deducted before funds pay 

No interest accrues while at  least half-time Interest rate remains for life of loan

Post-Baccalaureate Certification Programs 

(Excludes Certificates)

🏛️ Unsubsidized  Undergraduate Programs  All undergraduate   students who meet   eligibility requirements 6.53% (fixed) Interest accrues immediately, but repayment is deferred

 💰 Annual Borrowing Limits

📖 Earned Credits 👨‍👩‍👦 Dependent Students 🧑‍🎓 Independent Students
0 – 29.9 $5,500 (Max $3,500 Subsidized)   $9,500 (Max $3,500 Subsidized)
30 – 59.9 $6,500 (Max $4,500 Subsidized) $10,500 (Max $4,500 Subsidized)
60+ $7,500 (Max $5,500 Subsidized) $12,500 (Max $5,500 Subsidized)
📌 Post-Bacc students follow same limits as undergrad students, based on dependency.

🎯 Lifetime Borrowing Limits

Student Type Lifetime Limit Max Subsidized Amount
👨‍👩‍👦 Dependent Undergraduate & Post-Baccalaureate $31,000 $23,000
🧑‍🎓 Independent Undergraduate & Post-Baccalaureate $57,500 $23,000
📌 Once you reach your lifetime limit, you will not be eligible for additional federal loans unless you repay part of your existing balance.
 

GRADUATE & DOCTORAL PROGRAMS

 🎓 Loan Types & Eligibility

💰 Loan Type 📚 Eligible Programs 👩‍🎓 Who Can Borrow? 📊 Rate & Fee ⭐ Key Benefit
🏛️ Unsubsidized Loan

Graduate & Doctoral Programs

(Excludes Certificates)

All Students

8.08% Fixed Interest Rate

1.057% Fee deducted before funds pay

Interest accrues immediately
but repayment is deferred
📌 Graduate students do not qualify for Subsidized Loans.  

💰 Annual Borrowing Limits

📖 Earned Credits 👨‍🎓 Dependency Status 💲 Annual Loan Amount
Bachelors Degree Completed ❌ Dependency status does not apply Up to $20,500 Unsubsidized
📌 Graduate students can only borrow Unsubsidized Loans.

🎯 Lifetime Borrowing Limits

🎓 Student Type 💰 Lifetime Limit 🎁 Max Subsidized Amount
Graduate & Doctoral Student $138,500 (includes undergraduate & post-bac loans) ❌ Not eligible for Subsidized Loans
📌 Your total loan amount, including undergraduate and post-baccalaureate borrowing, cannot exceed $138,500.

 Key Takeaways:

Undergraduate & Post-Baccalaureate students have both Subsidized and Unsubsidized loan options, with borrowing limits based on dependency status.
Graduate & Doctoral students are only eligible for Unsubsidized Loans, with higher borrowing limits.
Lifetime borrowing caps apply, but repaying part of your loans may restore eligibility.


learn more:

Explore the sections below for information on:

💡How to apply 

💡FAQ's

💡How to compare federal and private loans

💡Requirements for first-time borrowers

💡Requirements for borrowers who are leaving school or graduating 

💡Repayment Information & tracking your loans