Federal Direct Loan
Both undergraduates and graduate students may receive Federal Direct Loans.
Students borrowing Federal Direct loans must complete the following requirements online at Studentaid.gov. You will need your Federal Student Aid (FSA) ID and password to complete these requirements.
| Requirement | When to Complete | Purpose |
| Entrance Counseling | One time when you first borrow. | To educate you about your rights and responsibilities in borrowing student loan funds. |
| Master Promissory Note | One time when you first borrow. | The MPN is your promise to repay your Federal Student Loan. |
You must be enrolled at least half-time in courses that count toward your program of study (6 credits for Undergrads) and (3 credits for Graduate- effective summer 2022) for the payment period to be eligible for a Federal Direct Loan. Payment periods are Fall, Winter/Spring (combined) and Summer (Term A and Term B combined). Loan funds will not be disbursed until you are attending on a half-time basis.
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Example for Undergraduate students: You are enrolled in summer, with 3 credits for Term A and 3 credits for Term B. You will be considered attending 6 credits when your Term B class begins. |
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Students enrolled in a less than half-time status course load (6 credits for Undergrads) and (3 credits for Graduate-effective summer 2022) are not eligible for federal loans. If you need assistance to cover the cost of your education, please review the information on Alternative Education Loans on-line at https://www.elmselect.com/v4/school/374/program-select. The chart below details the maximum loan amounts for which you may be eligible per academic year. You will automatically be offered the maximum allowable loan limit per year, and it is your responsibility to accept the loan amount that best meets your financial needs. There are two types of Federal Direct Student Loans: subsidized and unsubsidized. The subsidized loan is interest free while the student is in school and is awarded based on financial need. Interest accrues on the unsubsidized loan while the student is enrolled in school and the borrower may opt to pay it as it accrues, or allow it to accrue and capitalize. The unsubsidized loan is a non-need based loan program. NOTE: You must accept a full Federal Subsidized Loan offer before becoming eligible for a Federal Unsubsidized Loan. |
| Annual Federal Direct Loan Limits |
Base Loan Eligibility*
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Additional Unsubsidized Loan Amount
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| Undergraduate Dependent Students | |||
| 0-29 credits earned (Freshman) |
$3,500
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$2,000
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| 30-59 credits earned (Sophomore) |
$4,500
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$2,000
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| 60-89 credits earned (Junior) |
$5,500
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$2,000
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| 90+ credits earned (Senior) |
$5,500
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$2,000
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| Teacher Certification or Second Bachelor's Degree |
$5,500
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$2,000
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| Undergraduate Independent Students and Dependent Students Denied PLUS | |||
| 0-29 credits earned (Freshman) |
$3,500
|
$6,000
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| 30-59 credits earned (Sophomore) |
$4,500
|
$6,000
|
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| 60-89 credits earned (Junior) |
$5,500
|
$7,000
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| 90+ credits earned (Senior) |
$5,500
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$7,000
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| Teacher Certification or Second Bachelor's Degree |
$5,500
|
$7,000
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| Graduate or Professional Students |
$20,500 (ALL unsubsidized)
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| Total Borrowing Allowed (sum of all years) | |||
| Dependent Undergraduate | $31,000 ($23,000 max subsidized) | ||
| Independent Undergraduate or Dependent Undergraduate Denied PLUS | $57,500 ($23,000 max subsidized) | ||
| Graduate/Professional | $138,500 ($65,000 max subsidized) (includes borrowing as an undergraduate) | ||
| * Base Loan Eligibility may be either subsidized or unsubsidized as determined by student's need on the FAFSA | |||
Loan eligibility may decrease if you receive other financial aid that covers a portion of educational costs. Federal regulations will not allow total aid to exceed the cost of attendance. If you are a graduate student, be aware that a graduate assistantship tuition waiver might reduce your loan eligibility.
Already a current student at Ship and need information about your financial aid offer? Check your financial aid status on your myShip portal and be sure to check out the helpful links below about paying for college.