Unlike a subsidized loan, the student is responsible for the interest from the time the unsubsidized loan is disbursed until it is paid in full. You can choose to pay the interest or allow it to accumulate and be added to the principal amount of your loan.
LOAN LIMITS
The Federal Direct Subsidized and Unsubsidized Loan programs carry both annual and cumulative (lifetime) limits. Your SAR (Student Aid Report) lists your cumulative loans, but it is important that you also keep records of all your loan transactions. You can also look up your loan history online at: https://studentaid.gov/.
Loan Maximums | ||||
Student Level | Maximum (subsidized and unsubsidized) | Maximum Subsidized | ||
Dependent freshman | $5,500 | $3,500 | ||
Dependent sophomore | $6,500 | $4,500 | ||
Dependent junior or senior | $7,500 | $5,500 | ||
Independent freshman | $9,500 | $3,500 | ||
Independent sophomore | $10,500 | $4,500 | ||
Independent junior or senior | $12,500 | $5,500 | ||
Graduate/professional | $20,500 | 0 | ||
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Lifetime limits | ||||
Student Level | Maximum (subsidized and unsubsidized) | Maximum Subsidized | ||
Dependent undergraduate | $31,000 | $23,000 | ||
Independent undergraduate | $57,500 | $23,000 | ||
Graduate/Professional | $138,500* | $65,500* | ||
*The graduate debt limit includes loans received for undergraduate study prior to July 1, 2012.
If you reach your lifetime loan limit, you cannot receive any more of that type of loan. If you exceed your limit, aid already disbursed will be returned to the lender or may have to be repaid by you. We encourage that you borrow only what you need for educational expenses, and to keep track of your cumulative debt. If you need additional loan funding to assist you with continuing your education, alternative lending may be an option.