The Federal Direct Loan Program is a guaranteed student loan program from the federal government. Students must complete the Free Application for Federal Student Aid (FAFSA), be admitted to an eligible program, attend at least half time, and maintain Satisfactory Academic Progress. The Direct Stafford Loan Program has two types of loans - Subsidized and Unsubsidized.
The Subsidized Direct Loan is a need based loan awarded to undergraduate students. Students are awarded this loan after being considered for grant aid first. If a student's need changes during the year, because they receive additional grants, scholarships, or waivers, their eligibility for Subsidized Loans may change.
For first time undergraduate borrowers with a loan first disbursed on or after July 1, 2013 and before July 1, 2021, eligibility for Direct Subsidized Loans was limited to 150% of the length of the student's current educational program. Once the student had exceeded the maximum eligibility period, they were no longer eligible for Subsidized Loans and interest would have began to accrue on outstanding Subsidized Loans. The FAFSA Simplification Act, part of the Consolidated Appropriations Act, 2021, provided a repeal of this limit. If your Direct Subsidized Loans had lost their subsidy benefits before July 1, 2021 and you have a balance greater than zero on July 1, 2021, those loans will have their subsidy benefits retroactively reinstated.
Interest rates are established each year based on an index rate. The interest rate, once established on a loan, will be fixed for the life of that loan.
For prior interest rate information, visit StudentAid.gov.
Loan fees are deducted from each loan disbursement:
Beginning July 1, 2012, graduate students are not eligible for Subsidized Direct Loans.
The Unsubsidized Direct Loan is a non-need based loan awarded to both undergraduate and graduate students. Students are awarded this loan after being considered for grant aid and need based loans first.
Interest rates are established each year based on an index rate. The interest rate, once established on a loan, will be fixed for the life of that loan.
For prior interest rate information, visit StudentAid.gov.
Interest rates are established each year based on an index rate. The interest rate, once established on a loan, will be fixed for the life of that loan. Please note this rate is different than the rate for undergraduate students.
For prior interest rate information, visit StudentAid.gov.
Loan fees are deducted from each loan disbursement:
Once you accept a Federal Direct Subsidized or Unsubsidized loan, the U.S. Department of Education requires you to complete additional steps before the loan funds will credit toward the charges on your UW-W Student Account:
These three steps are described in detail here: https://www.uww.edu/financialaid/process/receiving-aid/loan-requirements
Grade Level | Dependent Student* | Independent Student |
Freshman (0-23 credits) |
$5,500 (no more than $3,500 Subsidized) | $9,500 (no more than $3,500 Subsidized) |
Sophomore (24-59 credits) |
$6,500 (no more than $4,500 Subsidized) | $10,500 (no more than $4,500 Subsidized) |
Juniors & Senior (60+ credits) |
$7,500 (no more than $5,500 Subsidized) | $12,500 (no more than $5,500 Subsidized) |
Graduate Students | N/A | $20,500 |
Dependent Students* | $31,000 (no more than $23,000 Subsidized) |
Independent Student | $57,500 (no more than $23,000 Subsidized) |
Graduate Students | $138,500 (no more than $65,500 Subsidized**) |
*Dependent Students whose parents cannot borrow a PLUS Loan have the same loan limits as Independent Students
**As of July 1, 2012, Graduate students are no longer eligible for Subsidized Loans.
After the Direct Loan is disbursed to the student, the loan is assigned to one of the Federal Direct Loan Servicers. The Loan Servicer will send periodic statements to the borrower regarding their loan status. Once the student drops below half time status or stops attending, there is a six month grace period on the loan. Students in this status will be required to complete Exit Loan Counseling. Repayment begins after the grace period ends. All repayment questions, including questions about deferment, forbearance, loan forgiveness, and consolidation should be directed to the Loan Servicer. For students who need help contacting their Loan Servicer, visit StudentAid.gov.
For more detailed repayment information, you should visit the Repayment Calculator. You can log in using your FSA ID to estimate payments based on your current loan balance.