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Subsidized Loans are loans for undergraduate students with financial need, as determined by your cost of attendance minus expected family contribution and other financial aid (such as grants or scholarships). Subsidized Loans do not accrue interest while you are in school at least half-time or during deferment periods.
Unsubsidized Loans are loans for both undergraduate and graduate students that are not based on financial need. Eligibility is determined by your cost of attendance minus other financial aid (such as grants or scholarships). Interest is charged during in-school, deferment, and grace periods. Unlike a subsidized loan, you are responsible for the interest from the time the unsubsidized loan is disbursed until it’s paid in full. You can choose to pay the interest or allow it to accrue (accumulate) and be capitalized (that is, added to the principal amount of your loan). Capitalizing the interest will increase the amount you have to repay.
The amount you can borrow through the Federal Direct Loan Program is determined by your dependency status and classification in college. The annual and aggregate loan limits are listed in the charts below.
Annual loan limits are determined by class (freshman, sophomore, etc.) and dependency status
| Academic Level | Dependent | Independent |
|---|---|---|
| Freshman (0-30 credits) | 3,500 ($2,000 Unsubsidized) | 3,500 ($6,000 Unsubsidized) |
| Sophomore (31-60 credits) | $4,500 ($2,000 Unsubsidized) | $4,500 ($6,000 Unsubsidized) |
| Junior and Senior (61 credits or more) | $5,500 ($2,000 Unsubsidized) | $5,500 ($7,000 Unsubsidized) |
Aggregate loan limits are the maximum loan amounts a student can receive throughout their academic career. Once the aggregate loan limit is met, the student becomes ineligible for Federal Direct Loans.
| Subsidized Loan Limit | Unsubsidized Loan Limit | Combined Loan Limits | |
|---|---|---|---|
| Dependent | $23,000 | $8,000 | $31,000 |
| Independent | $23,000 | $34,500 | $57,500 |
The interest rate varies depending on the type of loan and the first disbursement date of the loan. The table below provides interest rates for loans first disbursed on or after July 1, 2022.
| Interest Rates for Direct Loans First Disbursed on or after July 1, 2023, and before July 1, 2024 | ||
| Subsidized | Unsubsidized | Direct Parent Plus |
|---|---|---|
| 5.50% | 5.50% | 8.05% |
Federal Direct Loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted from each loan the borrower receives; meaning, the amount that is received will be less than the amount borrowed. The borrower is responsible for repaying the full amount of the loan. The table below provides the loan fees for loans first disbursed on or after October 1, 2020 and before October 1, 2023
| Fees for Direct Loans first disbursed on or after October 1, 2020 and before October 1, 2024 | ||
| Loan Type | Borrower Type | Loan Fee |
|---|---|---|
| Direct Subsidized and Direct Unsubsidized Loans | Undergraduate | 1.057% |
| Direct PLUS Loans | Parents of Dependent Students | 4.228% |
First-time Direct Loan borrowers must go to the Federal Student Aid site to complete the following:
• Loan Entrance Counseling
• Master Promissory Note (MPN)
30 Day Delay
Per federal regulations, loan borrowers that are first-time borrowers and have never been disbursed a federal student loan at any institution will be required to wait 30 days from the first scheduled day of the term before the first disbursement will be made on the loan.
Documents with RED FLAGS must be resolved. Click on a document for forms. Click on Document Details for more information
Log in to your myBC portalYou must maintain a minimum of 6 (six) credits that apply to your program of study to receive the loan.
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