FEDERAL LOANS
Federal loans typically offer lower interest rates and more flexible repayment options than private loans.
Your eligibility for federal loans is determined through the FAFSA (Free Application for Federal Student Aid), which must be completed for each academic year you wish to receive aid.
Before you receive your loan funds, you must complete entrance counseling and sign a Master Promissory Note (MPN).
TYPES OF FEDERAL DIRECT LOANS
Click the plus sign (+) next to each type of loan to display more information.
The Federal Direct Subsidized Stafford Loan is awarded on the basis of a student's financial need and other specific eligibility requirements.
The federal government does not charge interest on these loans while borrowers are enrolled in school at least half-time, during a six-month grace period, or during authorized periods of deferment.
Payments are not required while borrowers are enrolled in school at least half-time, during a six-month grace period, or during authorized periods of deferment.
Students apply for this loan through the FAFSA.
This loan is subject to an origination fee that is set by the U.S. Department of Education.
The Federal Direct Unsubsidized Stafford Loan is not based on a student's financial need, but students must also meet specific eligibility requirements.
Interest is charged throughout the life of the loan. The borrower may choose to pay the interest charged on the loan or allow the interest to be capitalized (added to the loan principal).
Payments are not required while borrowers are enrolled in school at least half-time, during a six-month grace period, or during authorized periods of deferment.
Students apply for this loan through the FAFSA.
This loan is subject to an origination fee that is set by the U.S. Department of Education.
The Federal Direct Parent PLUS Loan for an undergraduate student is not based on financial need and is limited to a parent borrower for a dependent student.
A parent is currently defined as a person's natural or adoptive mother or father, step-parent, or legal guardian.
The annual limit is equal to the student's cost of attendance, as defined by LSU, minus any other financial aid the student is receiving.
Students apply for this loan through the FAFSA, but parents must complete an additional application , pass a credit check, and meet eligibility requirements.
This loan is subject to an origination fee that is set by the U.S. Department of Education.
The Federal Direct Graduate PLUS Loan for a graduate student is not based on financial need and is limited to a graduate/professional student.
The annual limit is equal to the student's cost of attendance, as defined by LSU, minus any other financial aid the student is receiving.
Students apply for this loan through the FAFSA, as well as through an additional application. To qualify, students are required to pass a credit check and meet eligibility requirements.
This loan is subject to an origination fee that is set by the U.S. Department of Education.
FEDERAL LOAN PERIODS
A loan period is the academic period of enrollment a federal student loan is intended for, certified, and can be disbursed.
FEDERAL LOAN LIMITS
The loan limit represents the total of all subsidized and unsubsidized Stafford Loans a student may borrow at each level of study. If the total loan amount a student receives over the course of their education reaches the aggregate (lifetime) loan limit, they are not eligible to receive additional loans.
Undergraduate Students
| Classification | Dependent Students (not including students whose parents are unable to obtain PLUS Loans) | Independent Students (and dependent students whose parents are unable to obtain PLUS Loans) |
|---|---|---|
| First-Year Annual Loan Limit |
$5,500 total $3,500 or less in subsidized loans |
$9,500 total $3,500 or less in subsidized loans |
| Second-Year Annual Loan Limit |
$6,500 total $4,500 or less in subsidized loans |
$10,500 total $4,500 or less in subsidized loans |
| Third-Year and Beyond Annual Loan Limit |
$7,500 total $5,500 or less in subsidized loans |
$12,500 total $5,500 or less in subsidized loans |
| Subsidized and Unsubsidized Aggregate Loan Limit |
$31,000 total $23,000 or less in subsidized loans |
$57,500 total $23,000 or less in subsidized loans |
Graduate Students
| Classification | Annual Loan Limit | Aggregate Loan Limit |
|---|---|---|
| Graduate or Professional Student | $20,500 (unsubsidized only) | $138,500 |
| Veterinary Medicine Student | $40,500 (unsubsidized only) | $224,000 |
| Doctor of Clinical Psychology Student | $33,000 (unsubsidized only) | $224,000 |
DISBURSEMENT PERIODS
Funds will be disbursed approximately 3 business days after the start of the academic period.