{"id":214,"date":"2017-10-05T23:30:20","date_gmt":"2017-10-06T06:30:20","guid":{"rendered":"https:\/\/nau.edu\/office-of-scholarships-and-financial-aid\/?page_id=214"},"modified":"2026-07-27T18:28:48","modified_gmt":"2026-07-27T18:28:48","slug":"direct-subsidized-unsubsidized-loans","status":"publish","type":"page","link":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/types-aid\/student-loans\/direct-subsidized-unsubsidized-loans\/","title":{"rendered":"Direct subsidized &amp; unsubsidized loans"},"content":{"rendered":"<div class=\"nau-block nau-block-left-nav-top-bound\">\n    \t<button id=\"left-nav-toggle-btn\" onclick=\"toggleNav();\">\n\t\tON THIS PAGE \n\t\t<i id=\"chevron-icon\" class=\"fas fa-solid fa-chevron-down\"><\/i>\n\t<\/button>\n\t<div id=\"left-nav-menu-track\">\n\t\t<div id=\"left-nav-wrapper\">\n\t\t\t<div class=\"rfi-above-anchor-tags\">\n\t\t\t\t<div class=\"ri-container\">\n\t\t\t\t\t<a href=\"https:\/\/nau.edu\/admissions\/request-information\/\" id=\"request-info\" class=\"btn bg-true-blue left-nav-menu-bottom-button display-mobile\">Request info&nbsp;&nbsp;<\/a>\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t<div id=\"left-nav-menu\">\n\t\t\t\t<div class=\"menu-section menu-section-links\"><h6 class=\"hidden-mobile left-nav-list-header\">ON THIS PAGE<\/h6><ul class=\"left-nav-menu-list left-nav-automatic on-this-page\"><\/ul><h6>Related pages<\/h6><ul class=\"left-nav-menu-list\">\t\t\t\t\t\t\t<li><a href=\"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/contact\/\" title=\"Contact us\">Contact us<\/a><\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li class=\"back-to-top\"><a href=\"#\">Back to top<\/a><\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t<div class=\"ri-container\"><a href=\"https:\/\/nau.edu\/admissions\/request-information\/\" id=\"request-info\" class=\"btn bg-true-blue left-nav-menu-bottom-button display-mobile\">Request info&nbsp;&nbsp;<\/a><\/div><\/div>\t\t\t\t\t\t\t\t<div class=\"menu-section backcolor\">\n\t\t\t\t\t<div class=\"header\">\n\t\t\t\t\t\tHOW CAN WE HELP?\t\t\t\t\t<\/div>\n\t\t\t\t\t<ul class=\"responsive-icons\">\n\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t\t<button class=\"link-button\" onclick=\"embedLouieChatbot();\">\n\t\t\t\t\t\t\t\t<img decoding=\"async\" style=\"width: 20px;\" src=\"https:\/\/in.nau.edu\/wp-content\/themes\/nau-marketing-2021\/img\/icon-chat.svg\" alt=\"Live chat:\">\n\t\t\t\t\t\t\t\tChat\t\t\t\t\t\t\t<\/button>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li><a href=\"tel:928-523-4951\"><img decoding=\"async\" src=\"https:\/\/in.nau.edu\/wp-content\/themes\/nau-marketing-2021\/img\/icon-phone.svg\" alt=\"Telephone:\"> 928-523-4951<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t<li><a href=\"mailto:financial.aid@nau.edu\"><img decoding=\"async\" src=\"https:\/\/in.nau.edu\/wp-content\/themes\/nau-marketing-2021\/img\/icon-email.svg\" alt=\"Email:\"><span class=\"left-nav-email\"> financial.aid&#8203;@nau.edu <\/span><\/a><\/li>\n\t\t\t\t\t<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/div>\n\n<section class=\"nau-block left-nav-section\"><header class=\"entry-header\"><div class=\"breadcrumb\"><ol class=\"breadcrumbs\"><li><a href=\"https:\/\/in.nau.edu\">IN<\/a><span class=\"breadcrumb-chevron\" aria-hidden=\"true\">&gt;<\/span><\/li><li><a href=\"https:\/\/in.nau.edu\/office-scholarships-financial-aid\">OSFA<\/a><span class=\"breadcrumb-chevron\" aria-hidden=\"true\">&gt;<\/span><\/li><li class=\"current\">Pages<\/li><\/ol><\/div><h1 class=\"entry-title text-left \">Direct loans for NAU students<\/h1><hr class=\"h1-hr  text-left \" role=\"none\"><\/header><!-- .entry-header --><\/section><!-- <section class=\"nau-block left-nav-section grid-md-12\">\n    <header class=\"entry-header\">\n        <h1 class=\"entry-title text-left \" tabindex=\"0\" id=\"h1-first\">Dummy H1<\/h1>\n        <hr class=\"h1-hr  text-left \" role=\"none\">\n    <\/header>\n<\/section> -->\n\n<section class=\"nau-block left-nav-section grid-md-12\">\n    <div class=\"page-content\">\n        \n\n<h2 class=\"wp-block-heading\">What they are and how to get them<\/h2>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>There are two types of direct loans:<\/p>\n\n\n\n<section  \n    class=\"nau-block nau-block-panels   \" \n    data-layout_mobile=\"groupLayout-Stack gutter_Default panelLayoutPhotoTextVertical  photoAspect-16-9\"\n        data-layout_tablet=\"groupLayout-Stack gutter_Default panelLayoutPhotoTextVertical  photoAspect-16-9\"\n        data-layout_desktop=\"groupLayout-Grid gutter_Default panelLayoutPhotoTextVertical  photoAspect-4-3\"\n        data-layout_xl=\"groupLayout-Grid gutter_Default panelLayoutPhotoTextVertical  photoAspect-4-3\">\n\n    <div class=\"background-wrapper\">\n        <div class=\"block-main-content\">\n            \n            \n            \n            \n            \n            <div class=\"panel-wrapper\">\n                \n                                \n                        <div class=\"panel bg-gold  panelTypeText  noHover \"\n                            data-role=\"tabpanel\"\n                            data-panel=\"panel--0\"\n                            id=\"panel--0\">\n\n                            \n                                                                    <div class=\"content\">\n                                            <div class=\"text-wrapper\">\n                                                                                                <h3 class=\"h3-tab-index\">Subsidized loans<\/h3>\n                                                \n                                                                                                    <div class=\"text\">\n                                                        <p>Subsidized loans won\u2019t accrue interest while you\u2019re still attending school at least half-time. Students must demonstrate financial need to be eligible for subsidized loans. Graduate students are not eligible for subsidized loans.<\/p>\n<p>Half-time enrollment (6+ credits for undergraduates and 5+ credits for graduates) is required. You\u2019re responsible for paying the interest on unsubsidized loans even while you\u2019re still in college.<\/p>\n                                                    <\/div>\n                                                \n                                                                                            <\/div>\n                                        <\/div>\n\n                                    \n                                \n                                                        <\/div>\n                    \n                        <div class=\"panel bg-monsoon  panelTypeText  noHover \"\n                            data-role=\"tabpanel\"\n                            data-panel=\"panel--1\"\n                            id=\"panel--1\">\n\n                            \n                                                                    <div class=\"content\">\n                                            <div class=\"text-wrapper\">\n                                                                                                <h3 class=\"h3-tab-index\">Unsubsidized loans<\/h3>\n                                                \n                                                                                                    <div class=\"text\">\n                                                        <p>Unsubsidized loans are available to all undergraduate and graduate students as long as they have not met the lifetime loan limit.<\/p>\n<p>Half-time enrollment is required. Interest accrues on on unsubsidized loans even while you\u2019re still in college.<\/p>\n                                                    <\/div>\n                                                \n                                                                                            <\/div>\n                                        <\/div>\n\n                                    \n                                \n                                                        <\/div>\n                    \n                        <div class=\"panel bg-green  panelTypeText  noHover \"\n                            data-role=\"tabpanel\"\n                            data-panel=\"panel--2\"\n                            id=\"panel--2\">\n\n                            \n                                                                    <div class=\"content\">\n                                            <div class=\"text-wrapper\">\n                                                                                                <h3 class=\"h3-tab-index\">Loan interest rates and fees<\/h3>\n                                                \n                                                                                                    <div class=\"text\">\n                                                        <p>Interest rates are set by US Congress each year.<\/p>\n<p>Undergraduates: The interest rate for 2026-2027 subsidized and unsubsidized loans originated on or after July 1, 2026 is 6.52%.<\/p>\n<p>Graduates\/professionals: The interest rate for 2026-2027 unsubsidized loans originated on or after July 1, 2026 is 8.07<strong>%<\/strong>.<\/p>\n<p>All federal student loans have a 1.057% origination fee charged by the US Department of Education.<\/p>\n                                                    <\/div>\n                                                \n                                                                                            <\/div>\n                                        <\/div>\n\n                                    \n                                \n                                                        <\/div>\n                    \n                        <div class=\"panel bg-true-blue  panelTypeText  noHover \"\n                            data-role=\"tabpanel\"\n                            data-panel=\"panel--3\"\n                            id=\"panel--3\">\n\n                            \n                                                                    <div class=\"content\">\n                                            <div class=\"text-wrapper\">\n                                                                                                <h3 class=\"h3-tab-index\">Loan reductions<\/h3>\n                                                \n                                                                                                    <div class=\"text\">\n                                                        <p>Federal Direct Subsidized and Unsubsidized Loans will be prorated based on the number of credit hours a student is enrolled in. If a student enrolls in fewer than the full-time minimum, their loans will be reduced.<\/p>\n<p>Full-time minimums:<\/p>\n<ul>\n<li>Undergraduates: 12 credits<\/li>\n<li>Graduates\/professionals: 9 credits<\/li>\n<\/ul>\n                                                    <\/div>\n                                                \n                                                                                            <\/div>\n                                        <\/div>\n\n                                    \n                                \n                                                        <\/div>\n                                                <\/div>\n\n                    <\/div>\n    <\/div>\n<\/section>\n\n\n<h2 class=\"wp-block-heading\">One Big Beautiful Bill Act (OBBBA) federal loan changes<\/h2>\n\n\n\n<table id=\"tablepress-52\" class=\"tablepress tablepress-id-52\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\">Borrower\/Loan Type<\/th><th class=\"column-2\">Legacy\/Interim Exception Limits*<\/th><th class=\"column-3\">OBBBA Limits<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\">Dependent Undergraduate<\/td><td class=\"column-2\">Lifetime limit: $31,000 <br \/>\n<br \/>\nAnnual limit: between $5,500 and $7,500 depending on the student&#8217;s academic level<\/td><td class=\"column-3\">Unchanged<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">Independent Undergraduate<\/td><td class=\"column-2\">Lifetime limit: $57,500 <br \/>\n<br \/>\nAnnual limit: between $9,500 and $12,500 depending on the student&#8217;s academic level<\/td><td class=\"column-3\">Unchanged<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">Graduate<\/td><td class=\"column-2\">Lifetime limit: $138,500 (includes undergraduate loans)<br \/>\n<br \/>\nAnnual limit: $20,500<\/td><td class=\"column-3\">Lifetime limit: $100,000 (excludes undergraduate loans)<br \/>\n<br \/>\nAnnual limit: $20,500<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\">Professional Graduate<\/td><td class=\"column-2\">Lifetime limit: $224,000 (includes undergraduate loans)<br \/>\n<br \/>\nAnnual limit: $35,777<\/td><td class=\"column-3\">Lifetime limit: $200,000 (excludes undergraduate loans)<br \/>\n<br \/>\nAnnual limit: $50,000<\/td>\n<\/tr>\n<tr class=\"row-6\">\n\t<td class=\"column-1\">Graduate PLUS Loan Borrowers<\/td><td class=\"column-2\">No lifetime limit<br \/>\n<br \/>\nAnnual limit: Up to the student&#8217;s Cost of Attendance<\/td><td class=\"column-3\">Eliminated for new borrowers<\/td>\n<\/tr>\n<tr class=\"row-7\">\n\t<td class=\"column-1\">Parent PLUS Loan Borrowers<\/td><td class=\"column-2\">No lifetime limit<br \/>\n<br \/>\nAnnual limit: Up to the student&#8217;s Cost of Attendance<\/td><td class=\"column-3\">Lifetime limit: $65,000 per dependent student<br \/>\n<br \/>\nAnnual limit: $20,000 per dependent student<\/td>\n<\/tr>\n<tr class=\"row-8\">\n\t<td class=\"column-1\">Overall Lifetime Limit<\/td><td class=\"column-2\">None, aggregate limits could be paid down and re-borrowed<\/td><td class=\"column-3\">$257,500 total federal loan limit<br \/>\n<br \/>\nIncludes subsidized, unsubsidized and graduate PLUS loans<br \/>\n<br \/>\nExcludes parent PLUS loans<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<!-- #tablepress-52 from cache -->\n\n\n<p><em><strong><em><strong>*Note: The legacy\/interim exception requires consecutive fall\/spring enrollment and lasts for the shorter of 3 years or until the student&#8217;s remaining expected time to credential. <\/strong><\/em><\/strong><\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Tools and resources<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/in.nau.edu\/louie\/\">View your loan offers<\/a>: log into your LOUIE account and click the &#8220;Financial Aid&#8221; 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.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Additional requirements: after accepting your loan in LOUIE, you must complete <a href=\"https:\/\/studentaid.gov\/entrance-counseling\/\">Entrance Counseling<\/a>, which will help you understand your loan and how it works. You\u2019ll also need to sign a <a href=\"https:\/\/studentaid.gov\/mpn\/\" target=\"_blank\" rel=\"noreferrer noopener\">Master Promissory Note<\/a>, which is an agreement to repay your loans and their interest.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/loan-repayment-consolidation\/\">Loan repayment and consolidation<\/a>: learn more about the process and the best methods for paying off your student loans.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/studentaid.gov\/understand-aid\/types\/loans\/subsidized-unsubsidized\" data-type=\"link\" data-id=\"https:\/\/studentaid.gov\/understand-aid\/types\/loans\/subsidized-unsubsidized\">Review loan amount limits<\/a>: learn more about how much you can borrow per academic year or in your lifetime. <\/li>\n<\/ul>\n\n\n    <\/div>\n<\/section>\n\n<div class=\"nau-block nau-block-left-nav-bottom-bound\">\n\n<\/div>\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":7090,"parent":140,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"ring_central_script_selection":"","footnotes":""},"class_list":["post-214","page","type-page","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/wp-json\/wp\/v2\/pages\/214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/wp-json\/wp\/v2\/comments?post=214"}],"version-history":[{"count":40,"href":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/wp-json\/wp\/v2\/pages\/214\/revisions"}],"predecessor-version":[{"id":14269,"href":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/wp-json\/wp\/v2\/pages\/214\/revisions\/14269"}],"up":[{"embeddable":true,"href":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/wp-json\/wp\/v2\/pages\/140"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/wp-json\/wp\/v2\/media\/7090"}],"wp:attachment":[{"href":"https:\/\/in.nau.edu\/office-scholarships-financial-aid\/wp-json\/wp\/v2\/media?parent=214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}