Federal Direct Student Loans
These loans are government-insured student loans. They are not credit based. Students must file a FAFSA in order for the financial aid staff to determine eligibility. There are two types of Federal Direct Student Loans.
- Subsidized loans are need-based loans subsidized by the federal government, which ensures that all interest charges during both academic years and periods of deferment are paid by the government. The fixed interest rate on this loan, as of July 1, 2023, is 5.49 percent. Students have six months from the day they are no longer enrolled at least half time (see below) to begin repayment. Interest is not charged while students are in school.
- Unsubsidized loans are non-need-based loans that are not subsidized by the federal government. Students are responsible for all interest charges during academic years and periods of deferment. Students can defer interest payments until they begin repayment. The interest rate on this loan, as of July 1, 2023, is fixed at 5.49 percent for undergraduate students and 7.05 percent for graduate students. Students have six months from the day they are no longer enrolled at least half time (see below) to begin repayment on both principal and interest.
According to federal regulations, institutions are to disclose to students the average amount a student would borrow on the Federal Direct Student Loan programs as well as the Federal Direct Graduate PLUS Loan for graduate students. The following chart indicates those average amounts reflected by student programs for the 2022-23 academic-year.
| Student type by program and the average number of years to complete the respective program | Total average amount borrowed on all federal loan programs | Average monthly payment on the *Federal Standard Repayment Plan over a maximum of 10 years with a maximum interest rate of 6.8% |
|---|---|---|
| Traditional day undergraduate students for four years of study | $26,168 | $301 |
| Evening undergraduate students for two years of study | $20,206 | $233 |
| MIM/MBA students for two years of study | $36,528 | $420 |
| GSE students for two years of study | $36,344 | $418 |
| MIT students for the entire program | $35,013 | $403 |
*The Standard Repayment Plan is the most aggressive payment plan offered by the Federal Direct Loan Servicing Center. Other available repayment plans would reduce the monthly payments.
Enrollment Status Information That Has an Impact Upon Loan Repayment
- Undergraduate students must be enrolled in six credits or more to be considered half-time.
- Graduate students must be enrolled in three credits or more to be considered half-time.
- The Federal Student Loan exit loan counseling process will be required once a student is no longer enrolled at least half time.
Online Federal Loan Processes
- Complete Federal Student Loan Agreement / Electronic Master Promissory Note: studentaid.gov/mpn
- You will need your Federal Student Aid ID (FSA ID) in order to complete this process.
- Complete Federal Student Loan Entrance-Loan Counseling Process:
- Allow 30 minutes to complete the process.
- Read all text carefully.
- Print your "Borrowers Rights and Responsibilities" for your records.
- Print the "Verification" page that indicates that you have completed and passed the quiz. You may need this page as proof of completing this process. Please retain it in your records.
- Complete Federal Student Loan Exit-Loan Counseling Process:
- You will need your Federal Student Aid ID (FSA ID) in order to complete this process.
For a complete list of federal loan servicers, visit: studentaid.gov/manage-loans/repayment/servicers.