This program provides federally insured, low interest and long-term loans to students or parents to help cover the costs of attending college. The federal government is the lender (not a bank or any other financial institution) and makes the loan directly to the student or the parent through the college. Direct Loans are either subsidized or unsubsidized. Repayment on the student's loans begins six months after graduation, termination of attendance, or when you register for less than six credits while in attendance. Repayment on Parent Loans for Undergraduate Students (PLUS) begins after the first check disbursement.

Federal Direct Subsidized Loan

Direct Subsidized Loans are available to undergraduate students with financial need. Your school determines the amount you can borrow, and the amount may not exceed your financial need.

The U.S. Department of Education pays the interest on a Direct Subsidized Loan

while you’re in school at least half-time,
for the first six months after you leave school (referred to as a grace period), and
during a period of deferment (a postponement of loan payments).

Note: If you received a Direct Subsidized Loan that was first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay interest that accrues during your grace period, the interest will be added to your principal balance.

Federal Direct Unsubsidized Loan

Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need. Your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive. You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.

Note: If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).

What are the current interest rates?

Undergraduate Borrowers	Graduate or Professional Borrowers
6.53%	8.08%
Direct Subsidized Loans and Direct Unsubsidized Loans	Direct Unsubsidized Loans

Dependent Undergraduate

Yearly Eligibility	Maximum Subsidized Loan	Additional Unsubsidized Loan	Total Loan Combined Subsidized and Unsubsidized
First Year (0-29 credits)	$3,500	$2,000	$5,500
Second Year (30-59 credits)	$4,500	$2,000	$6,500
Third Year and Fourth Year (60 credits) BA Programs	$5,500	$2,000	$7,500

Independent Undergraduate

Yearly Eligibility	Maximum Subsidized Loan	Additional Unsubsidized Loan	Total Loan Combined Subsidized and Unsubsidized
First Year (0-29 credits)	$3,500	$6,000	$9,500
Second Year (30-59 credits)	$4,500	$6,500	$10,500
Third Year and Fourth Year (60 credits) BA Programs	$5,500	$7,000	$12,500

Frequently Asked Questions

How do I know if I am eligible?

To be eligible for William D. Ford Federal Direct Loans, a student must be:

Be a U.S. citizen or an eligible non-citizen
Be admitted and enrolled as a matriculated student
Have completed the FAFSA process. (See "How do I apply"- Step 1)
Be registered for at least six credits per semester to apply and must maintain enrollment in at least six credits at the time the check is disbursed.
Be making satisfactory academic progress for federal student aid

How do I apply?

Please refer to: https://www.citytech.cuny.edu/financial-aid/apply.aspx

How do I increase my Federal Loan?

If you have already submitted a loan request for the current academic year, but need additional loan funds, please complete the Federal Direct Loan Status Change form and indicate how much you wish to increase your loan.

How do I reduce or cancel my Federal Loan?

If you have already submitted a loan request for the current academic year, but do not need all the funds you are eligible for, please submit the Federal Direct Loan Status Change form to either cancel it completely or reduce your loan to your desired amount.

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ANNOUNCEMENTS

William D. Ford Federal Direct Loan Program