Undergraduate federal student loans are loans offered by the U.S. Department of Education (ED) to help eligible students cover the cost of their education at an eligible university, college, community college, trade school, career school, or technical school. In order to be eligible, students must complete the FAFSA yearly.
Additional Eligibility Requirements for Federal Direct Student Loans
To be eligible for Federal Direct Subsidized and Unsubsidized Loans, you must meet the federal requirements:
- Be enrolled in a degree-seeking program
- Be enrolled at least half-time (1.5 Dickinson Credits)
- Remain in good academic standing with the college (Satisfactory Academic Progress)
Federal Direct Loans for Undergraduates
Federal Direct Subsidized Loan
Only available to undergraduate students who have financial need (Cost of Attendance - Student Aid Index = Financial Need). Eligibility for this loan is determined by the school and the information submitted on the FAFSA. The amount you borrow, cannot exceed the aggregate limit or your financial need. Interest is paid for by the Department of Education while the student is enrolled at least half-time, during the grace period (six months after the student withdraws, drops below half-time, or graduates), and during certain deferments or forbearances. Repayment does not begin until six months after the student graduates, withdraws, or drops below half-time enrollment.
Federal Direct Unsubsidized Loan
Available to undergraduate students who complete the FAFSA for that year. Borrower limits are determined by the school, but they cannot exceed the aggregate limit or cost of attendance. The borrower is responsible for the payment of any interest that accrues on the loan. Repayment does not begin until six months after the student graduates, withdraws, or drops below half-time enrollment.
Undergraduate Federal Direct Loan Interest Rates and Aggregate Limits
Undergraduate Federal Direct Loan Interest Rates for 2025-2026
Loan Type |
Fixed Interest Rate* |
Origination Fee** |
Federal Direct Subsidized Loans for Undergraduates | 6.39% | 1.057% |
Federal Direct Unsubsidized Loans for Undergraduates |
6.39% | 1.057% |
*Interest rates for Federal Direct Subsidized Loans and Federal Direct Unsubsidized Loans first disbursed on or after July 1, 2025 and before July 1, 2026
**Origination fees for Federal Direct Subsidized Loans and Federal Direct Unsubsidized Loans first disbursed on or after October 1, 2020.
Use this calculator to determine the amount of money that you will either receive from your federal loan or the amount you need to request before the origination fee is deducted.
Undergraduate Federal Direct Loan Aggregate Limits
Year |
Dependent Students (except students who parents are unable to obtain PLUS Loans) |
Independent Students (and dependent undergraduate students whose parent(s) are unable to obtain PLUS Loans) |
First-Year Undergraduate Annual Loan Limit |
$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 |
$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 |
$7,500- 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 |
Subsidized and Unsubsidized Aggregate Loan Limit |
$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. |
Required Actions for Federal Loan Disbursement
Dickinson College requires students to accept the loans they are offered and wish to borrow in their Self Service Banner (instructions here). First-time borrowers taking out federal loans are required to complete Entrance Counseling, which explains your rights and responsibilities as a student loan borrower, and a Master Promissory Note (MPN), which is your promise to repay the loan.
Federal Direct Loan Entrance Counseling
Entrance counseling ensures you understand the terms and conditions of your loan and your rights and responsibilities. You'll learn what a loan is, how interest works, your options for repayment, and how to avoid delinquency and default.
When you're finished, a record of your completion will be sent to the schools you selected, and you can then receive your loan money. Keep in mind that you cannot save and leave an incomplete session; you must complete entrance counseling in one sitting.
Your federal loans will not disburse until this is completed.
Click to begin Federal Direct Loan Entrance Counseling.
Master Promissory Note (MPN)
The Master Promissory Note (MPN) is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s).
You may receive more than one loan under an MPN over a period of up to 10 years to pay for your or your child’s educational costs, as long as the school is authorized to use the MPN in this way and chooses to do so.
Your federal loans will not disburse until this is completed.
Click to complete the Master Promissory Note.
Find instructions for completing these documents here.
Required Action Before Entering Repayment
You must complete exit counseling when you leave school or drop below half-time enrollment. The purpose of exit counseling is to ensure you understand your student loan obligations and are prepared for repayment.
Exit Counseling
Federal Student Loan Exit Counseling is a mandatory process for students who have received federal student loans and are graduating, leaving school, or dropping below half-time enrollment. This counseling session provides important information about loan repayment, including the terms and conditions of the loans, repayment options, and borrower responsibilities. It ensures that students understand their obligations and helps them make informed decisions about managing their student loan debt. You can complete your required Federal Student Loan Exit Counseling online.
At Dickinson College, federal student loan exit counseling is tailored to provide specific guidance and resources to help students navigate their loan repayment journey. The college offers a comprehensive overview of the repayment process, including personalized support and tools to manage loans effectively. All of this is discussed in this video provided by the Office of Financial Aid.
Federal Student Loan Repayment
Dickinson College is committed to ensuring our students are able to successfully repay their federal student loans after they graduate, withdraw, or drop below half-time. Due to that, we are providing some additional resources on the federal direct loan repayment process.
Federal Student Loan Repayment Simulator
This loan simulator helps borrowers estimate their monthly student loan payments and choose a loan repayment option that best their needs and goals. In addition, you can use this tool to see what consolidating your loans would look like.