Subsidized and Unsubsidized Loans

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.

Subsidized and Unsubsidized Loan Limits

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.

Loan Limits, Interest Rates, and Fees

To Apply for a Subsidized and Unsubsidized Loan

  1. Complete a FAFSA (Free Application for Federal Student Aid)
  2. Complete Loan Entrance Counseling and Master Promissory Note (MPN)
    1. Log in to the Federal Student Aid site
    2. Click on Loans and Grants (top menu)
    3. Click on Loan Entrance Counseling
      1. Click I'm an Undergraduate Student, then click Start
    4. Once you have completed your Entrance Counseling, go back and click on Loans and Grant to complete the MPN
    5. Click on Master Promissory Note (MPN)
      1. Click I'm an Undergraduate Student, then Start

To Be Eligible You Must

  • Be a U.S. citizen, national or permanent resident
  • Be enrolled at least half-time
  • Not have defaulted or owe a refund to any previous aid program
  • Maintain satisfactory academic progress

First Time Borrowers

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.

To Receive Your Subsidized 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 portal
  1. Click on the Financial Aid tab
  2. Click on Application status
  3. Verify the term - click View Status tab
  4. Click on the - Sub Loan ACCPT/DECLN
  5. The loan amount you are offered is an estimated amount. You may Accept the full loan, Reduce the loan amount, or Decline the offer.

You must maintain a minimum of 6 (six) credits that apply to your program of study to receive the loan.