Federal Direct Loans

Source: https://fas.ucsd.edu/types/loans/federal-direct-loans-program.html Parent: https://fas.ucsd.edu/types/loans/index.html

Through federal direct loans, students and parents can borrow directly from the federal government and have a single contact — Manage Loans — for everything related to repaying all loans, even if direct loans were made at different schools.

Federal Direct Loans Offer:

• Various repayment plans: income-based, income contingent, standard, graduated, and extended
• A loan forgiveness program
• Interest rate reductions for borrowers with loans first disbursed on or after July 1, 2012, if their payments are automatically debited from their bank account
• Varied deferment options
• Easy qualification for Parent PLUS and Graduate PLUS loans
• A simplified loan process for borrowers
• Online access to Direct Loan account information 24 hours a day, 7 days a week through the Federal Student Aid website.

Additional information regarding direct loans, interest rates, repayment plans, and loan cancellations can be found at the Direct Loan for Students website.

Undergraduate Students

Federal Direct Loan (Subsidized and Unsubsidized)

• Subsidized loans are need-based. Interest is paid by the US Department of Education  while the borrower is enrolled in at least half-time study, during the first six months after the borrower has graduated or is no longer enrolled, or during periods of deferment.
• Unsubsidized loans are not need-based, and the borrower is responsible for all interest accrued from the time the loan is issued.
• For details on subsidized and unsubsidized loans, visit the Federal Student Aid website.

Federal Direct Loan (Subsidized and Unsubsidized)

Loan Amount and term:

Annual maximum amounts for dependent undergraduates:

Annual maximum amounts for dependent undergraduates

Annual maximum amounts for independent undergraduates:

Annual maximum amounts for independent undergraduates

Aggregate maximum amounts for undergraduates:

Undergraduate Annual loan limits for Sub and Unsub loan

The aggregate loan limits include any Subsidized Federal Stafford Loans or Unsubsidized Federal Stafford Loans you may have previously received under the Federal Family Education Loan (FFEL) Program. As a result of legislation that took effect July 1, 2010, no further loans are being made under the FFEL Program.

If the total loan amount you receive over the course of your education reaches the aggregate loan limit, you are not eligible to receive additional loans. However, if you repay some of your loans to bring your outstanding loan debt below the aggregate loan limit, you could then borrow again, up to the amount of your remaining eligibility under the aggregate loan limit.

Funded and disbursed by: The U.S. Department of Education through UC San Diego

Interest rates effective:

2025: July 1, 2025 – June 30, 2026\ 2024: July 1, 2024 – June 30, 2025

Interest rate:

2025: 6.39% fixed for loans first disbursed on or before July 1, 2025 to June 30, 2026\ 2024: 6.53% fixed for loans first disbursed on or before July 1, 2024 to June 30, 2025

Loan fees:

For loans first disbursed on or after October 1, 2025 and by September 30, 2026, the loan origination fee will be 1.057%.\ For loans first disbursed on or after October 1, 2024 and by September 30, 2025, the loan origination fee will be 1.057%.

Repayment of principal and interest begins: 6 months after you are no longer enrolled at least half-time.\

Is the Federal Direct Subsidized Loan need-based?

Yes. You must demonstrate financial need to qualify for a Subsidized Loan. The federal government pays (subsidizes) the interest on your behalf during in-school and authorized deferment periods. You begin accruing and paying interest after you leave school, or when your deferment period ends.

Depending on your financial need, you may not receive the maximum loan amount in a Subsidized Loan. However, you might still be able to borrow unsubsidized funds up to the total maximum annual loan amounts.

Is the Federal Direct Unsubsidized Loan need-based?

No. You may borrow an Unsubsidized Loan regardless of your financial need. However, the federal government does not pay the interest. While you may defer the principal during in-school, grace, and authorized deferment periods, you're responsible for the interest upon disbursement. You may make voluntary interest and/or principal payments to your Repayment Servicer at any time prior to going into official repayment or you may allow the interest to accrue and be capitalized to your principal at the time of official repayment.

To borrow a Federal Direct Loan

1. File your FAFSA and provide any requested documents.
2. UC San Diego offers Direct Loan options on your financial aid offer. This can be found on the Financial Aid & Scholarships student portal via MyTritonLink. You will be notified via your UC San Diego email when your financial aid offer is ready for review.
3. Review the Manage Awards section to Accept/Decline the financial aid offer via your Financial Aid & Scholarships student portal on TritonLink.
4. Sign the electronic Master Promissory Note (eMPN). This document confirms your agreement to repay the loan.
5. Complete online entrance loan counseling (first-time UC San Diego borrowers only.)
6. Loan funds will be credited to your UC San Diego student account (read more about how you get your financial aid for prospective undergraduate, current undergraduate, and graduate students.

Federal Direct PLUS Loan

Unsubsidized loans for the parents of dependent students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. For more information, visit the Federal Student Aid PLUS Loan webpage.

Federal Direct PLUS Loan

Loan amount and term: The annual maximum equals the cost of attendance minus any need-based and non-need-based aid.

Need-based/subsidized?: No

Offered and disbursed by: The U.S. Department of Education through UC San Diego.

Interest rates effective:

2025: July 1, 2025 - June 30, 2026\ 2024: July 1, 2024 - June 30, 2025

Interest rate:

2025: 8.94% fixed for loans first disbursed on or before July 1, 2025 to June 30, 2026\ 2024: 9.08% fixed for loans first disbursed on or before July 1, 2024 to June 30, 2025

Loan fees:

For loans first disbursed on or after October 1, 2025 and by September 30, 2026, the loan origination fee will be 4.228%.\ For loans first disbursed on or after October 1, 2024 and by September 30, 2025, the loan origination fee will be 4.228%.

Application: Complete the Federal Direct Parent PLUS Loan Application in addition to filing the FAFSA.

2024: Federal Direct Parent PLUS Loan Application Instructions\           Academic Year Loan Period\           09/26/2024 - 06/13/2025

2024: Federal Direct Parent PLUS Loan Application Instructions\           Summer Loan Period\           06/16/2025 - 09/24/2025

2025: Federal Direct Parent PLUS Loan Application Instructions\           Academic Year Loan Period\           09/25/2025 - 06/12/2026

For parents borrowing the Parent PLUS Loan

UC San Diego is using the electronic Direct Parent PLUS Loan Application process through the studentaid.gov website. To ensure that the Parent PLUS loan funds are available by the registration fee deadline; we encourage you to submit your Direct Parent PLUS Loan Application at least 3 weeks prior to the fee deadline dates.

GRADUATE or PROFESSIONAL STUDENTS CAN ONLY APPLY FOR THEIR PLUS LOAN THROUGH THEIR, STUDENT PORTAL, MyTritonLink.

WHAT DO YOU NEED BEFORE YOU START THE PLUS LOAN APPLICATION PROCESS?

1. An FSA ID is required and must be set up prior to logging in. Create your FSA ID. Please note the Parent FSA ID is not the same as the Student FSA ID. The Parent FSA ID acts as the electronic signature for the FAFSA and the Electronic Master Promissory Note. The Endorser FSA ID acts as the electronic signature for the Endorser Addendum if an Endorser is obtained. Students, parents, and endorsers can follow the steps outlined in the "How to Create an FSA ID" a one-page guide.
2. Student Information (name, social security number, date of birth, permanent address and phone number)
3. Borrower Personal Information (permanent and mailing address, U.S. Address (if permanent and mailing addresses are foreign – contact the lender’s Student Loan Support Center at 1 (800) 433-3243) for instructions), phone number and e-mail address)
4. Employer’s Information (employer’s name, address and phone number)

THINGS TO DO BEFORE YOU APPLY

If you have placed a security freeze on your credit file, you must lift or remove the freeze at each credit bureau before you apply. Your Direct PLUS Loan Application will not be processed if you have a security freeze. The lender will place your loan application in a “pending” status until the issue is resolved.

1. Avoid Delays…Know how much you can borrow before you start the Direct Parent PLUS Loan Application. For each academic year, you may borrow up to – but not more than – the school’s cost of attendance, minus the amount of other financial assistance the student receives. Refer to your student’s financial aid offer. Parent PLUS Loan Applications received with an “unknown” borrower requested amount cannot be processed. You will be notified to contact our office for the maximum amount of eligibility available to you, delaying your Parent PLUS Loan. After you know how much you can borrow, you will need to reapply by completing a new Direct Parent PLUS Loan Application, delaying your Parent PLUS Loan and the availability of funds.
2. Consent to Release Information E-Form must be on file in our office. It allows the parent permission to contact our office to inquire about the student’s financial records. To complete the Consent to Release Information E-Form, students should log into the financial aid student portal, MyTritonLink. The completed E-form will update the student’s financial aid file immediately. Our contact information is listed below.
3. Avoid Delays…Enter the information into the Direct PLUS Loan Application correctly. Enter the parent applicant information in the appropriate parent section and the student information in the student section of the Direct PLUS Loan Application. Applications received with incorrect information cannot be processed. You will be notified to reapply by completing a new Direct PLUS Loan Application, delaying your Application and the availability of funds.

A legal parent includes a biological parent, an adoptive parent, or a person that the state has determined to be your parent (for example, when a state allows another person's name to be listed as parent on a birth certificate). Grandparents, foster parents, legal guardians, older brothers or sisters, widowed stepparents, and aunts and uncles aren't considered parents unless they've legally adopted you. https://studentaid.gov/help/who-is-parent

HOW TO APPLY FOR A FEDERAL DIRECT PARENT PLUS LOAN

• Click “Apply for a PLUS Loan”. NOTE: There is an option to view a Demo or Preview a read-only version of the Parent Direct PLUS Loan Application.
• Select an Financial Aid Year
• Enter Loan Information
• Select an Financial Aid Year
• Student Information
• School and Loan Information
  • Select Schools to Notify: UNIVERSITY OF CALIFORNIA, SAN DIEGO
• Complete the Direct PLUS Loan Request
  • Loan Amount Requested
  • Loan Period
• Borrower Information

• AVOID DELAYS. Review, update or correct your completed Direct PLUS Loan Application/Request for errors prior to submitting it.

• Before you can receive a Direct Parent PLUS Loan, you must complete a Direct PLUS Master Promissory Note (Direct PLUS Loan MPN), which explains all of the terms and conditions of Direct PLUS Loans. The MPNs are valid for up to 10 years. You do not need to complete a new Direct PLUS Loan MPN every time you apply for a new Direct Parent PLUS Loan. EXCEPTION: A new Direct PLUS Loan MPN is required if the credit decision was denied and later approved with an Endorser, or if the credit decision was denied and the lender later approved the loan by appeal. The U.S. Department of Education, the lender, will require a new Direct PLUS Loan MPN to be completed each time a new Direct Parent PLUS Loan falls into one of the above-mentioned categories.

• If your credit was denied and you wish to appeal or endorse:
• Appeal A Credit Decision
• Endorse A Direct PLUS Loan: Endorsers will need an FSA ID.
• If the loan was Endorsed or the parent completed a successful Credit Appeal, the parent needs to complete PLUS Credit Counseling.
• Our office receives Direct PLUS Loan Applications and Direct PLUS Loan MPNs electronically daily from the lender. Please allow 5-7 business days for our office to process the Direct Parent PLUS Loan. If an Endorser is obtained or a loan is approved via Credit Appeal, it could take longer to process.

For a quick overview of Direct PLUS Loans (e.g. interest rate, fees, repayment options) please visit the U.S. Department of Education’s website for Direct PLUS Loans.

Other Information

• Eligibility is limited to biological or adoptive parents (with no adverse credit history) of a dependent student.
• If the Parent PLUS Loan is denied, contact the Financial Aid and Scholarships Office.

Graduate and Professional School Students

Federal Direct Unsubsidized Loan

Unsubsidized loans are not need-based, and the borrower is responsible for all interest accrued from the time the loan is issued. For details on subsidized and unsubsidized loans, visit the Federal Student Aid website.

Federal Direct Unsubsidized Loan

Annual maximum amounts for independent graduate/ professional school students: $20,500

Need-based/subsidized?: No.

Offered and disbursed by: The U.S. Department of Education (with funds from the U.S. Treasury)

Interest rates effective:

2025: July 1, 2025 – June 30, 2026\ 2024: July 1, 2024 – June 30, 2025

Interest rate:

2025: 7.94%  fixed for loans first disbursed on or after July 1, 2025 to June 30, 2026\ 2024: 8.08% fixed for loans first disbursed on or after July 1, 2024 to June 30, 2025

Loan fees:

For loans first disbursed on or after October 1, 2025 and by September 30, 2026 the loan origination fee is 1.057%.\ For loans first disbursed on or after October 1, 2024 and by September 30, 2025 the loan origination fee is 1.057%.

Repayment of principal and interest begins: 6 months after your full-time or half-time enrollment ends.\

Interest begins to accrue after the loan is disbursed.

To borrow a Federal Direct Loan

1. File your FAFSA and provide any requested documents.
2. UC San Diego offers Direct Loan options on your financial aid offer. This can be found on the Financial Aid & Scholarships student portal via MyTritonLink. You will be notified via your UC San Diego email when your financial aid offer is ready for review.
3. Review the Manage Awards section to Accept/Decline offered financial aid via your Financial Aid & Scholarships student portal on TritonLink.
4. Sign the electronic Master Promissory Note (eMPN). This document confirms your agreement to repay the loan.
5. Complete online entrance loan counseling (first-time UC San Diego borrowers only.)
6. Loan funds will be credited to your UC San Diego student account (read more about how you get your financial aid for prospective undergraduate, current undergraduate, and graduate students.

Federal Direct Graduate PLUS Loan

Unsubsidized loans for graduate and professional school students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. For more information, visit the Federal Student Aid PLUS Loan webpage.

Federal Direct Graduate PLUS Loan

Loan amount and terms: The annual maximum equals the cost of attendance minus estimated financial assistance, including other non-need-based loans.

Need-based/subsidized?: No.

Offered and disbursed by: The U.S. Department of Education (with funds from the U.S. Treasury)

Aggregate Direct Loan Amounts for Graduates and Professional

• $138,500 for graduate or professional students - No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.
• Effective for periods of enrollment beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Direct Subsidized Loans. The $65,500 subsidized aggregate loan limit for graduate or professional students includes subsidized loans that a graduate or professional student may have received for periods of enrollment that began before July 1, 2012, or for prior undergraduate study.
• If the total loan amount you receive over the course of your education reaches the aggregate loan limit, you are not eligible to receive additional loans. However, if you repay some of your loans to bring your outstanding loan debt below the aggregate loan limit, you could then borrow again, up to the amount of your remaining eligibility under the aggregate loan limit.

To be eligible for the Direct Graduate PLUS Loan, you must

• Use the funds for educational expenses
• Be enrolled at least half-time
• Be a U.S. citizen, U.S. national, or permanent resident
• Not be in default or owe a repayment on any Title IV loan or grant

Comparing the Graduate PLUS and private loans

The Graduate PLUS Loan may be a better financing option over private loans.

• The Graduate PLUS Loan offers competitive fixed rates for the life of the loan. Your income and credit score will affect your eligibility, and you must pass a credit check.
• Private loans have variable interest rates, without a rate cap and with adjustments during the year.
• Carefully compare the two programs to choose the one that is best for your circumstances.
• Make sure you request the maximum Unsubsidized loan amount for which you're eligible, before borrowing a Graduate PLUS Loan!

Funded and Disbursed by: The U.S. Department of Education disburses funds directly to UC San Diego

Interest rates effective:

2025: July 1, 2025 – June 30, 2026\ 2024: July 1, 2024 – June 30, 2025

Interest rate:

2025: 8.94% fixed for loans first disbursed on or after July 1, 2025 to June 30, 2026\ 2024: 9.08% fixed for loans first disbursed on or after July 1, 2024 to June 30, 2025

Loan fees:

For loans first disbursed on or after October 1, 2025 and by September 30, 2026 the loan origination fee is 4.228%.\ For loans first disbursed on or after October 1, 2024 and by September 30, 2025 the loan origination fee is 4.228%.

Repayment of principal and interest begins: 6 months after the borrower ceases to be enrolled at least half-time

To borrow the Direct Graduate PLUS Loan

1. File your FAFSA and provide any requested documents.
2. UC San Diego offers Direct Loan options on your financial aid offer. This can be found on the Financial Aid & Scholarships student portal via MyTritonLink. You will be notified via your UC San Diego email when your financial aid offer is ready for review.
3. Review the Manage Awards section to Accept/Decline the award via your Financial Aid & Scholarships student portal on TritonLink.
4. Sign the electronic Master Promissory Note (eMPN). This document confirms your agreement to repay the loan.
5. Complete online entrance loan counseling (1st year UC San Diego graduate students must complete entrance counseling.)
6. Loan funds will be credited to your UC San Diego student account (read more about how you get your money).

Loan Basics

• Remember: Borrowing money is a serious responsibility. All loans must be repaid with interest.\ \
• Before you borrow, pursue outside agency scholarships as early as possible.\ \
• File your 2026-27 FAFSA or California Dream Act Application by the March 2 priority deadline to be considered for the best types of financial aid. \ \
• Submit any additional documents requested by the Financial Aid and Scholarships Office before the May 1 deadline for continuing students and June 15 for new entering students.\ \
• Review the undergraduate eligibility requirements to make sure you're eligible to receive loans (or any other types of financial aid).\ \
• If you are not eligible or have exhausted federal loan possibilities, you may consider private loan programs, but be aware that these loans may have higher interest rates, fewer repayment options and you may have to meet additional requirements, such as having an approved co-signer.\ \
• Read more about loans and about the Federal Direct Loan Program.\ \
• Please note: If you accept a Title IV loan, the loan(s) will be submitted to the National Student Loan Data System (NSLDS) and will be accessible to guaranty agencies, lenders, and schools designated as authorized users of the data system.\

Loan Consolidation

Eligible federal student loans can be combined into one Direct Consolidation Loan once the student has graduated. For more information, visit the Federal Student Aid Student

Loan Consolidation Webpage

Loans

• Repaying Your Loan
• Private Education Loan Programs
• Federal Direct Loans
• California Dream Loans
• University Undergraduate Loans
• Short-Term Emergency Loans
• Private Loan Programs Frequently Asked Questions
• Receiving Your Loan