Instructional Leadership, emphasis: K-12 School Leadership (MEd)
A photo of a student getting help from an advisor.
  1. IN
  2. OSFA
  3. Types of aid
  4. Student loans
  5. Direct subsidized & unsubsidized loans

Direct loans for NAU students

What they are and how to get them

Direct loans are offered directly from the federal government and are meant to help students pay for college. These are the most common type of student loans. Direct loans generally have more favorable terms and conditions than private loans. We recommend using direct loans when possible over private loans.

There are two types of direct loans:

Subsidized loans

Subsidized loans won’t accrue interest while you’re still attending school at least half-time (6+ credits for undergraduate students). Students must demonstrate financial need to be eligible for subsidized loans. Graduate students are not eligible for subsidized loans.

Unsubsidized loans

Unsubsidized loans are available to all undergraduate and graduate students as long as they have not met the lifetime loan limit. Half-time enrollment (6+ credits for undergraduates and 5+ credits for graduates) is required. You’re responsible for paying the interest on unsubsidized loans even while you’re still in college.

Loan interest rates

Interest rates are set by US Congress each year.

Undergraduate students: The interest rate for 2026-2027 subsidized and unsubsidized loans originated on or after July 1, 2026 is 6.52%.

Graduate/professional students: The interest rate for 2026-2027 unsubsidized loans originated on or after July 1, 2026 is 8.07%.

Tools and resources

  • View your loan offers: log into your LOUIE account and click the “Financial Aid” menu tile to view your award offers each academic year. Subsidized and unsubsidized loans must be accepted via the LOUIE account if a student is interested in borrowing.
  • Additional requirements: after accepting your loan in LOUIE, you must complete Entrance Counseling, which will help you understand your loan and how it works. You’ll also need to sign a Master Promissory Note, which is an agreement to repay your loans and their interest.