Undergraduate Federal Student Loans
The U.S. Department of Education provides federally funded loans to students that complete the Free Application for Federal Student Aid (FAFSA). To qualify, students must be enrolled at least half-time (6 credits) in a degree seeking program and meeting Satisfactory Academic Progress (SAP). Loans will initially be offered to students as part of their financial aid package, but the student must accept the loans in their HokieSPA if they wish to utilize the loans. All first-time borrowers are required to complete a Master Promissory Note (MPN) and Loan Entrance Counseling with Federal Student Aid. Watch the short 2 minute video below on Responsible Borrowing before accepting any loans.
Description of Loans
Subsidized Loans:
Students must exhibit Need to qualify for this type of loan. Need is determined by comparing the student's Cost of Attendance, Student Aid Index and any gift aid a student may receive. Subsidized loans do not accrue interest while the student is enrolled at least half-time and during the six-month grace period after graduation or leaving school.
Unsubsidized Loans:
All degree seeking students enrolled at least half-time qualify for this type of loan. Interest begins to accrue immediately upon disbursement of unsubsidized loans. Watch this short video below to learn about the impact of interest on your repayment.
Annual Federal Loan Amounts
The U.S. Department of Education determines federal loan amounts for all qualifying students. Students are not required to accept the full amount of the loan, but a student cannot receive more than the stated amount each year, unless additional credits articulate during the year.
| Dependent Students | Independent Students | |
| Freshman (0-29 credits) | $5,500/year | $9,500/year |
| Sophomore (30-59 credits) | $6,500/year | $10,500/year |
| Junior/Senior (60+ credits) | $7,500/year | $12,500/year |
Loan Interest Rates and Fees
All federal loans are subject to an origination fee and fixed interest rates. To view the current rates, click the button below.
Fixed Interest Rate:
Interest is additional money that you pay as a cost of borrowing. Fixed means that the interest rate never changes. The interest is calculated as a percentage of the unpaid amount that you borrowed. While subsidized loans don't accrue interest immediately, unsubsidized loans do.
Origination Fee:
An origination fee is a percentage of your loan amount charged by the lender for the processing of your loan. Federal student loans have an origination fee of approximately $10/per 1,000; therefore, the amount you receive as a disbursement will be less than the amount you accept. Example: $1,000 loan = $990 disbursement, but you are responsible for paying back the full $1,000 plus any interest that accrues.
Aggregate Loan Limits
The aggregate loan limit is the maximum amount of federal debt allowed for all Federal Direct Student Loans (subsidized and unsubsidized combined).
Dependent undergraduate combined loan limit: $31,000
Independent undergraduate combined loan limit: $57,500
Subsidized loans cannot exceed $23,000 of the amounts listed above