Office of Financial Aid Office of Financial Aid

Federal Direct Loan

This loan program is available to all students. Federal Direct Loans are low-interest loans from the U.S. Department of Education that are administered by Eastern Michigan University. It is the U.S. Department of Education's major form of self-help financial aid and is available through the William D. Ford Federal Direct Loan Program. There are two types of Federal Direct Loans: Subsidized and Unsubsidized.

Because the funding for the Federal Direct Loan program comes straight from the U.S. Department of Education, you do not have to find a lender to borrow through the program.

Please disregard any offers you may receive about the Federal Direct Loan program through private banks and other lenders. Since Eastern Michigan University is a Federal Direct Lending participating university, you may not use a private lender to apply for a Federal loan.

Applying for a Federal Direct Loan

When you complete the Free Application for Federal Student Aid or the Renewal Free Application for Federal Student Aid, you are applying for all of the aid programs for which you may be eligible, including direct loans.

If a William D. Ford Federal Direct Loan (subsidized or unsubsidized) has been offered to you as part of your aid package it will appear on your Financial Aid Award Letter. You can accept or decline these loans just as you would any other aid program assistance offered to you. Additionally, if you are accepting all or part of the loan, you are required to complete and sign a Master Promissory Note and return it to the Office of Financial Aid.

Loan Limits
Annual Loan Limits - Direct Loan
Dependent Students Subsidized Loans Additional Unsubsidized Loans Combined Loan Limit
First-Year Undergraduate (0-24 credits) $3,500 $2,000 $5,500
Second-Year Undergraduate (25-55 credits) $4,500 $2,000 $6,500
Third-Year and Beyond Undergraduate (56+ credits) $5,500 $2,000 $7,500
Independent Students (and dependent students whose parents were denied a PLUS loan) Subsidized Loans Additional Unsubsidized Loans Combined Loan Limit
First-Year Undergraduate (0-24 credits) $3,500 $6,000 $9,500
Second-Year Undergraduate (25-55 credits) $4,500 $6,000 $10,500
Third-Year and Beyond Undergraduate (56+ credits) $5,500 $7,000 $12,500
Graduate and Professional Students Unsubsidized Loans*
Graduate and Professional Students $20,500**
*The Subsidized Direct Loan program has been eliminated for graduate students beginning fall 2012.  Graduate students will only be offered Unsubsidized Direct loan funding.
Aggregate Loan Limits - Direct Loan
  Subsidized Loans Additional Unsubsidized Loans Combined Loan Limit
Dependent Undergraduate Students $23,000 $8,000 $31,000
Independent Undergraduate Students (and dependent students whose parents were denied a PLUS loan) $23,000 $34,500 $57,500
Graduate and Professional Students (including undergraduate loans) $65,500 $73,000 $138,500
Interest Rates
Grade Level Loan Type 7/1/2012 to 6/30/2013 7/1/2013 to 6/30/2014 7/1/2014 to 6/30/2015
Undergraduate Subsidized 3.40% 3.86% 4.66%
Unsubsidized 6.80% 3.86% 4.66%
Graduate Unsubsidized 6.80% 5.41% 6.21%
General Requirements

Once you are awarded a Federal Direct Student Loan, you must fulfill certain conditions before loan funds can be credited to your account. These include, but may not be limited to:

Completion of a Loan Entrance Counseling

Entrance Counseling is actually a counseling session which is designed to help you better understand your obligation as a borrower and provides other useful information on the loan process. Entrance Counseling is required for all of first time, first-year borrowers. Click here to complete Entrance Counseling.

Completion of a Master Promissory Note

Direct Loan borrowers must complete a Master Promissory Note (MPN) using your federal Personal Identification Number (PIN). The same PIN used to complete your online FAFSA is used to sign your MPN. To obtain a PIN, visit www.pin.ed.gov.

Enrollment of at least Half Time
Please review the chart below to make sure you are meeting the enrollment criteria.

FULL-TIME STATUS

¾ TIME

½ TIME

 Undergraduate

12 or more

9, 10, or 11

6, 7, or 8

 Graduate

8 or more

6 or 7

4 or 5