Federal Direct Loans

Source: https://fas.ucsd.edu/types/loans/federal-direct-loans-program.html Parent: https://fas.ucsd.edu/forms/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\ 2026: Coming Soon

Interest rate:

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

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%.\ \

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 and Scholarships (FAS) student portal. 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 and Scholarships (FAS) student portal.
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 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:

Need-based/subsidized?: No

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

Interest rates effective:

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

Interest rate:

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

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%.\ \

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

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

2025: Federal Direct Parent PLUS Loan Application Instructions\           Summer Loan Period\           06/15/2026 - 09/23/2026

2026: Federal Direct Parent PLUS Loan Application Instructions\           Academic Year Loan Period\           09/24/2026 - 06/11/2027

For parents borrowing the Parent PLUS Loan

University of California, San Diego (UC San Diego) uses the electronic Direct Parent PLUS Loan Application process through Federal Student Aid at studentaid.gov. \ \ To ensure Parent PLUS Loan funds are available by the registration fee deadline, we strongly encourage you to submit your application at least three weeks prior to the fee deadline date. Please avoid applying too early, as the lender’s credit decision is valid for 180 days.

*Graduate and Professional Students:*A new parent borrower who takes out a Parent PLUS Loan will be subject to:

NEW for 2026–27

A new parent borrower who takes out a Parent PLUS Loan will be subject to:\

• $20,000 annual limit per dependent student
• $65,000 aggregate borrowing limit per dependent student

Refer to the Federal Updates under Resources on our website.\ Note: Details on handling legacy provisions for current borrowers are still in progress.\ \

Who Is Considered a Parent?

A legal parent includes:

• A biological parent
• An adoptive parent
• A person recognized by the state as a parent (e.g., listed on the birth certificate)

These individuals are now referred to as Contributors. \ \ Grandparents, foster parents, legal guardians, siblings, widowed stepparents, aunts, and uncles are not considered parents unless they have legally adopted the student.

Things to Do Before You Apply

1. Know How Much You Can Borrow

For each academic year, you may borrow $20,000 per year cap per dependent student and a $65,000 aggregate limit per dependent student (without regard to amounts forgiven, repaid, canceled, or discharged). Note: Details on handling legacy provisions for current borrowers are still in progress.\ ⚠️ Applications submitted with an “unknown” requested amount cannot be processed and will delay funding.

2. Remove Any Credit Security Freeze

If you have placed a security freeze on your credit file, you must lift it with each credit bureau before applying. Applications cannot be processed while a freeze is in place.

• Equifax             1-888 EQUIFAX (378-4329) equifax.com
• TransUnion      1-800-916-8800                     transunion.com

3. Submit the Consent to Release Information E-Form

Students must complete the Consent to Release Information E-Form via the Financial Aid Tool on TritonLink. This allows those whom the student has provided consent to speak with our office about the student’s financial aid record.\ \ The form updates the student’s file overnight once submitted.\ \ 4. Enter Information Carefully

Incorrect parent or student information will result in processing delays and require a new application submission.

What You Need Before You Start the Parent PLUS Loan Application

*1. FSA ID*An FSA ID is required before logging in.

• The Parent FSA ID is separate from the Student FSA ID.
• The Parent FSA ID serves as the electronic signature for the FAFSA and the Master Promissory Note (MPN).
• If using an endorser, the Endorser must also have their own FSA ID.
• Requested Loan Amount \
• Continuing parent borrowers, please refer to the Federal Updates under Resources on our website

2. School Information

School Name: University of California, San Diego\ School Code: 00131700

3.The dependent student must complete the 2026-27 FAFSA.

4. Dependent Student Information

• Full name
• Social Security Number
• Date of birth
• Permanent address
• Phone number

5. Parent Borrower Personal Information

• Permanent and mailing address
• U.S. address (if both addresses are foreign, contact the Student Loan Support Center at 1-800-433-3243)
• Phone number
• Email address

6. Parent Borrower Employer Information

• Employer name
• Address
• Phone number

How to Apply for a Federal Direct Parent PLUS Loan

1. Visit studentaid.gov 2. Select “Apply for a PLUS Loan”

• You may view a demo or preview version before applying.

3. Select the 2026–27 Award Year 4. Enter:

• Student Information
• School Information
• Select: UNIVERSITY OF CALIFORNIA, SAN DIEGO (00131700)
• Loan Amount Requested
• Continuing parent borrowers, please refer to the Federal Updates under Resources on our website

• Loan Period (for example, the academic year loan period is 09/24/2026-06/11/2027)

• Complete the Parent Borrower Information section.\

• Carefully review all information before submitting.\ \

Master Promissory Note (MPN) Requirement

Before receiving a Direct Parent PLUS Loan, the parent borrower must complete a Direct PLUS Loan Master Promissory Note (MPN).

• The MPN is valid for up to 10 years.
• A new MPN is not required each year unless:\
• The credit decision was denied and later approved with an endorser, or
• The loan was approved through a credit appeal.

In those cases, a new MPN is required.\ \

If Your Credit Is Denied

If denied, you may:\

• Appeal the credit decision, or\
• Obtain an Endorser (Endorsers must have their own FSA ID)\

If approved through appeal or endorsement:\

• The parent borrower must complete PLUS Credit Counseling.

\

Processing Timeline

Our office receives applications and MPNs electronically each day from the U.S. Department of Education.\ \ Please allow:\

• 5–7 business days for standard processing
• Additional time if the loan requires endorsement or credit appeal review

For additional details about Direct Parent PLUS Loans (interest rates, fees, and repayment options), please visit the U.S. Department of Education’s Direct PLUS Loan webpage.

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\ 2026: Coming Soon

Interest rate:

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

Loan fees:

For loans first disbursed on or after October 1, 2025 and by September 30, 2026 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 Financial Aid and Scholarships (FAS) student portal. 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 and Scholarships (FAS) student portal.
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\ 2026: Coming Soon

Interest rate:

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

Loan fees:

For loans first disbursed on or after October 1, 2025 and by September 30, 2026 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 and Scholarships (FAS) student portal student portal. 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 and Scholarships (FAS) student portal.
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
• Receiving Your Loan