Federal Direct Loans
Direct Subsidized & Unsubsidized Loans
Federal Direct Subsidized Loans are need-based loans offered to eligible undergraduate students who demonstrate financial need on the FAFSA. No interest accrues on subsidized loans while you are enrolled at least half-time. Interest begins accruing on the loan after your 6-month grace period ends.
Federal Direct Unsubsidized Loans are loans offered to eligible undergraduate, graduate, and professional students who file the FAFSA. Eligibility for unsubsidized loans is not based on financial need. Interest begins accruing once the loan is disbursed.
The U.S. Department of Education is the lender for all Federal Direct Subsidized and Unsubsidized Loans.
Sub/Unsub FAQs
To borrow a subsidized or unsubsidized loan(s), a student must:
- File the FAFSA
- Meet eligibility requirements for Title IV financial aid
- Accept the loan(s) on Enroll & Pay
- Complete Loan Entrance Counseling
- Complete a Master Promissory Note
How much a student can borrow in subsidized and unsubsidized loans each year is determined by annual loan limits. Your annual loan limit is based on your dependency status on the FAFSA and how many credit hours you have earned.
There are also aggregate loan limits, which limits how much you can borrow during your undergraduate degree.
The table below outlines annual and aggregate loan limits for undergraduate students who are enrolled full-time. If you are not enrolled full time, your federal loans will be prorated for the academic year based on how many hours you are enrolled in.
| Undergraduate Students - Federal Subsidized/Unsubsidized Direct Loans - Effective July 1, 2026 | ||
|---|---|---|
| Year In School | Dependent* Students (except students whose parents are unable to obtain PLUS Loans) | Independent* Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans) |
| First-Year Undergraduate Annual Loan Limit (0-29 credit hrs completed) | $5,500-No more than $3,500 of this amount may be in subsidized loans. | $9,500-No more than $3,500 of this amount may be in subsidized loans. |
| Second-Year Undergraduate Annual Loan Limit (30-59 credit hrs completed) | $6,500-No more than $4,500 of this amount may be in subsidized loans. | $10,500-No more than $4,500 of this amount may be in subsidized loans. |
| Third Year and Beyond Undergraduate Annual Loan Limit (60+ credit hrs completed) | $7,500 per year-No more than $5,500 of this amount may be in subsidized loans. | $12,500-No more than $5,500 of this amount may be in subsidized loans. |
| Aggregate Loan Limit for Undergraduate Students | $31,000-No more than $23,000 of this amount may be in subsidized loans. | $57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans. |
| *Your dependency status is determined by whose information you are required to report on the FAFSA. | ||
How much a graduate student can borrow in unsubsidized loans each year is determined by annual loan limits. There are also lifetime loan limits, which limits how much you can borrow during your lifetime.
The table below outlines annual and lifetime loan limits for graduate students who are enrolled full-time. If you are not enrolled full time, your federal loans will be prorated for the academic year based on how many hours you are enrolled in.
"Graduate Student" refers to all graduate students enrolled in a master's or doctoral degree program that is not classified as a "professional" degree program for federal loan purposes.
| Graduate Students - Federal Unsubsidized Direct Loans - Effective July 1, 2026 | ||
|---|---|---|
| Annual Loan Limit | Lifetime Loan Limit | |
| Received federal loans at KU for your CURRENT Graduate Program of study PRIOR to July 1, 2026 (known as the "legacy provision")* | $20,500 | $138,500 (includes undergraduate loans) |
| Did NOT receive federal loans at KU for CURRENT Graduate program prior to July 1, 2026 | $20,500 | $100,000 (not including undergraduate loans) |
| Enrolled in a new graduate program at KU after July 1, 2026 | $20,500 | $100,000 (not including undergraduate loans) |
| *Students who qualify under the legacy provision will continue to borrow under previous loan limits for 3 academic years or the remainder of their expected time to credential (within the published length of time to do so), whichever is less. Students cannot opt into or out of the legacy provision. Review more information about Legacy Status and Time to Credential determination. | ||
How much a professional student can borrow in unsubsidized loans each year is determined by annual loan limits. There are also lifetime loan limits, which limits how much you can borrow during your lifetime.
The table below outlines annual and lifetime loan limits for professional students who are enrolled full-time. If you are not enrolled full time, your federal loans will be prorated for the academic year based on how many hours you are enrolled in.
The federal government uses the term “professional student” to describe students enrolled in specific, advanced degree programs that lead directly to a professional license. "Professional Student" includes students enrolled in the following doctoral programs: Law; Clinical, Counseling and Applied Psychology (doctoral programs); Medicine; and Pharmacy / Pharmaceutical Sciences.
| Professional Students - Federal Unsubsidized Direct Loans - Effective July 1, 2026 | ||
|---|---|---|
| Annual Loan Limit | Lifetime Loan Limit | |
| Received federal loans at KU for CURRENT Professional Program of study PRIOR to July 1, 2026 (known as the "legacy provision")* | $20,500 | $138,500 (includes undergraduate loans) |
| Did NOT receive federal loans at KU for CURRENT Professional Program prior to July 1, 2026 | $50,000 | $200,000 (not including undergraduate loans) |
| Enrolled in a new professional program at KU after July 1, 2026 | $50,000 | $200,000 (not including undergraduate loans) |
| *Students who qualify under the legacy provision will continue to borrow under previous loan limits for 3 academic years or the remainder of their expected time to credential (within the published length of time to do so), whichever is less. Students cannot opt into or out of the legacy provision. Review more information about Legacy Status and Time to Credential determination. | ||
Repayment on subsidized and unsubsidized loans begins 6-months after you graduate, leave school, or drop below half-time enrollment. When repayment begins, you will make your payments to the federal government through your assigned student loan servicer.
When you graduate, leave school, or drop below half-time enrollment, you will be asked to complete Loan Exit Counseling where you will learn about your federal student loan obligations and what you federal loan payments will look like.
How much you will owe in student loans and how much your monthly payment will be when you enter repayment will depend on:
- The total amount of federal student loans you have borrowed
- The interest rate(s) applied to each of your loans
- The repayment plan you choose
Learn more about federal student loan repayment through the Federal Student Aid website. Use the Federal Student Aid Repayment Calculator to estimate monthly payments.
When you graduate, leave school, or drop below half-time enrollment, you will be asked to complete Loan Exit Counseling where you will learn about your federal student loan obligations and what your federal loan payments will look like.
If KU students want additional guidance on student loan repayment, we encourage you to connect with Jayhawk Finances - KU's financial literacy program. KU students can connect with Jayhawk Finances through one-on-one coaching sessions, workshops, and using their online tools and resources, including information about student loan repayment.
Direct PLUS Loans for Parents
Direct PLUS Loans for Parents (also referred to as Parent PLUS Loans) are available to eligible parents or stepparents of an eligible dependent undergraduate student who is enrolled at least half-time. Parent PLUS Loans can be used to assist with the student's educational expenses that are not covered by scholarships, grants or student loans. Interest begins accruing once the Parent PLUS Loan is disbursed.
The U.S. Department of Education is the lender for all Federal Direct PLUS Loans.
PLUS FAQs
Steps to borrow a Parent PLUS Loan:
- The student must file the FAFSA and meet eligibility requirements for Title IV financial aid; the student must also be a dependent student, as determined by the FAFSA
- Parent completes the Direct PLUS Loan Application for Parents; a credit check is conducted on all PLUS Loan applicants.
- To qualify, the parent applicant must not have adverse credit history. If a parent has adverse credit history, there are options a parent can consider to still qualify for the Parent PLUS loan.
- Parent completes a Master Promissory Note
Though it is not required, we encourage parents to complete PLUS Loan Credit Counseling. Please note: Credit counseling is required if you have obtained an endorser or documented extenuating circumstances in order to receive a Parent PLUS Loan.
How much a parent can borrow from a Parent PLUS loan will be determined by whether or not a student is considered to fall under the legacy provision for Parent PLUS loans.
The table below outlines annual and aggregate loan limits for Parent PLUS Loans for parents of undergraduate students who are enrolled for the academic year.
| Parents - Federal Direct Parent PLUS Loans - Effective July 1, 2026 | ||
|---|---|---|
| Annual Parent PLUS Loan Limit | Aggregate Parent PLUS Loan Limit | |
| Received federal loans at KU for CURRENT program of study PRIOR to July 1, 2026 (known as the "legacy provision")* | Cost of Attendance minus Other Financial Aid | No Aggregate Limit |
| Did NOT receive federal loans at KU for current program prior to July 1, 2026** | $20,000 per year, per student | $65,000 per student |
*Students who qualify under the legacy provision can continue to have parents borrow under previous Parent PLUS loan limits for 3 academic years or the remainder of their dependent student's expected time to credential (within the published length of time to do so), whichever is less. Students cannot opt into or out of the legacy provision. Review more information about Legacy Status and Time to Credential determination. **Generally, parents may not borrow more than half of the annual limit of a parent PLUS loan in any single semester. This means that new Parent PLUS loan borrowers who are limited to only borrowing $20,000/year may only borrow up to $10,000 per semester. | ||
Unless a parent requests a deferment, repayment will begin after the loan is fully disbursed. When repayment begins, the parent will make payments to the federal government through their assigned student loan servicer.
Learn more about repayment for Parent PLUS loans.
Direct PLUS Loans for Graduate or Professional Students
Direct PLUS Loans for Graduate or Professional Students (also referred to as Graduate PLUS Loans) are being eliminated and will no longer be available to new borrowers as of July 1, 2026.
Students who qualify under the legacy provision can continue to borrow under previous Graduate PLUS loan limits for 3 academic years or the remainder of their expected time to credential (within the published length of time to do so), whichever is less. Review more information about Legacy Status and Time to Credential determination.
Graduate PLUS Loans are available to eligible students who are enrolled at least half-time. Interest begins accruing once the Graduate PLUS Loan is disbursed.
The U.S. Department of Education is the lender for all Federal Direct PLUS Loans.
Grad PLUS FAQs
To borrow a Graduate PLUS Loan, a student must:
- File the FAFSA
- Meet eligibility requirements for Title IV financial aid
- Complete the PLUS Loan Application for Graduate or Professional Students
- To qualify, a student applicant must not have adverse credit history. If you have adverse credit history, there are options you can consider to still qualify for a Graduate PLUS Loan.
- Complete a Master Promissory Note
Though it is not required, we encourage students to complete PLUS Loan Credit Counseling. Please note: Credit counseling is required if you have obtained an endorser or documented extenuating circumstances in order to receive a Graduate PLUS Loan.
PLUS loans for Graduate Students and Professional Students are being eliminated for new borrowers. The "Grad PLUS" program - which previously allowed graduate and professional students to borrow up to full cost of attendance - is no longer available to new borrowers as of July 1, 2026.
Students who qualify under the legacy provision can continue to borrow under previous Graduate PLUS loan limits for 3 academic years or the remainder of their expected time to credential (within the published length of time to do so), whichever is less. Students cannot opt in or out of the legacy provision.
| GRADUATE & PROFESSIONAL STUDENTS - Federal Direct PLUS Loans - Effective July 1, 2026 | ||
|---|---|---|
| Annual Graduate PLUS Loan Limit | Aggregate Graduate PLUS Loan Limit | |
| Received federal loans at KU for CURRENT program of study PRIOR to July 1, 2026 (known as the "legacy provision")* | Cost of Attendance minus Other Financial Aid | No Aggregate Limit |
| Did NOT receive federal loans at KU for current program prior to July 1, 2026 | Graduate PLUS loans are not an option | Graduate PLUS loans are not an option |
| *Students who qualify under the legacy provision can continue to borrow under previous Graduate PLUS loan limits for 3 academic years or the remainder of their expected time to credential (within the published length of time to do so), whichever is less. Students cannot opt into or out of the legacy provision. Review more information about Legacy Status and Time to Credential determination. | ||
Repayment on Graduate PLUS loans begins 6-months after you graduate, leave school, or drop below half-time enrollment. When repayment begins, you will make your payments to the federal government through your assigned student loan servicer.
Learn more about repayment for Graduate PLUS Loans.