Overview: Federal Direct Loans
Direct loans are low-interest loans for students to help pay for the cost of a student's education after high school. These loans are awarded to undergraduate, graduate, and professional students who meet the following criteria:
- Enrolled in an eligible degree-seeking program
- Enrolled at least half-time (6 credits for undergraduate students, 4 credits for graduate, 6 credits for professional students)
The lender is the U.S. Department of Education rather than a bank or other financial institution. There are two types of federal Direct loans and your eligibility for both is determined using your financial aid application.
- Direct Subsidized loans, received through the 2011-2012 academic year, are interest-free while you are enrolled at least half-time and during a 6-month grace period after you leave school. For the 2012-2013 academic year, new Direct Subsidized Loans will begin to accrue interest once your drop below half-time status or leave school. Also, Direct Subsidized loans will no longer be available to graduate/professional students.
- Direct Unsubsidized loans accrue interest while you are enrolled. You can chose to pay the interest each month while in school, or allow the interest to accumulate.
Borrowing limits for each academic year depend on your class level:
| Undergraduate Students: | |
|---|---|
| Freshman (Yearly Limit) |
Dependent: $5,500 (maximum $3,500 may be subsidized) Independent: $9,500 (maximum $3,500 may be subsidized) |
| Sophomore (Yearly Limit) |
Dependent: $6,500 (maximum $4,500 may be subsidized) Independent: $10,500 (maximum $4,500 may be subsidized) |
| Junior/Senior (Yearly Limit) |
Dependent: $7,500 (maximum $5,500 may be subsidized) Independent: $12,500 (maximum $5,500 may be subsidized) |
| 2nd or Post Baccalaureate (Yearly Limit) |
Dependent: $5,500 (maximum $3,500 may be subsidized) Independent: $9,500 (maximum $3,500 may be subsidized) |
| Aggregate Loan Limit | Dependent: $31,000 (maximum $23,000 may be subsidized) Independent: $57,500 (maximum $23,000 may be subsidized) |
| Graduate/Law Students: | |
|---|---|
| Yearly Limit | 2011-2012: $20,500 (maximum $8,500 may be subsidized) |
| Aggregate Loan Limit | $138,500 (maximum $65,500 may be subsidized. This limit includes Stafford Loans received for undergraduate study.) |
| Medical Students: | |
|---|---|
| Yearly Limit | 2011-2012: $40,500 (maximum $8,500 may be subsidized) 2012-2013: $40,500 in Unsubsidized Loans |
| Aggregate Loan Limit | $224,000 (maximum $65,500 may be subsidized. This limit includes Stafford Loans received for undergraduate study.) |
Direct subsidized:
- 0% interest rate while enrolled in college at least half-time, and during the six month grace period after you leave school for loans through the 2011-2012 academic year. As of the 2012-2013 academic year, the 0% interest rate during the six month grace period was eliminated. Interest will begin to accrue immediately once you leave school or enroll less than half-time.
- 3.4% interest rate during repayment for Undergraduates who borrowed for the 2011-2012 school year
- 6.8% interest rate during repayment for Undergraduates who borrowed for the 2012-2013 school year
- 6.8% interest rate during repayment for Graduate students who borrowed for the 2011-2012 school year
- For the 2012-2013 academic year, Direct Subsidized Loans will no longer be available to graduate/professional students.
Direct unsubsidized:
- Loans have a 6.8% fixed interest rate.
No payments required while you are enrolled at least half-time. Repayment begins six months after you graduate, leave school, or drop below half-time enrollment. At this time, you will need to conduct an exit interview. You will then need to work with your Federal Direct Servicer for payment arrangements and information.
Applying for the Loan
- Accept your loan(s) in MyUH
- First-time borrowers are required to complete Direct Loan Entrance Counseling AND Direct Loan Master Promissory Note (MPN) for each type of loan you accepted prior to receiving the first disbursement of a Direct Loan. If you have already completed an Entrance Counseling and/or MPN at another school, you must still complete one at the University of Hawaiʻi at Mānoa.
Please be aware that it can take up to one week for our office to receive notification that you completed your Entrance Counseling and MPN.
- Login to https://studentloans.gov
. Click on the "Sign in" button.
- Enter in your information at the sign in screen. You PIN is the same as your FAFSA PIN. If you do not have a PIN, go to http://www.pin.ed.gov to apply for one.
- Click on the "Complete Master Promissory Note" link:
Financial Aid Services will be notified once you have completed and signed your MPN and Entrance Counseling.
If you have questions regarding the Entrance Counseling or Master Promissory Note, please call Direct Loans at 1-800-557-7394.