Undergraduate Loans

A loan is money you can borrow but must repay with interest. Borrowing can be costly so we recommend you consider borrowing only if you have exhausted all other options, and to only borrow what you need. You should start by making a budget for expenses for the year to determine if you need funds above the current aid offer.

Some loans are need-based while others are available to any enrolled student. An undergraduate financial aid offer may include a combination of Federal Direct Subsidized and Unsubsidized loans.

Subsidized Loans

Subsidized loans are offered to eligible undergraduate students who have demonstrated financial need determined by the FAFSA to help cover the costs of higher education. The federal government pays the interest on the loan during:

your enrollment in school on at least a half time (6 credits or more) basis;
a six-month grace period immediately following the student's separation from school; and
a deferment, which is a temporary, authorized time when payments may be postponed.

Unsubsidized Loans

Unsubsidized loans are offered to eligible undergraduate, graduate, and professional students, but the you do not have to demonstrate financial need to be eligible for the loan.

Interest is charged with the first disbursement until the day the loan is repaid in full. You may either choose to pay the accumulated interest while you are in school, or to have the unpaid interest capitalized; i.e., added to the principal balance of the loan.

NOTE: If the loan interest is capitalized, it will increase the amount of the loan to be repaid.

Annual and Maximum Federal Direct Loan Limits

The amount of Federal Direct Loan funds you are eligible to borrow each academic year is limited by your grade level (total earned credits), your dependency status, your financial need and your cost of attendance. You cannot borrow more than you cost of attendance for the academic year. The annual cost of attendance is included on your financial aid offer.

There are lifetime limits on how much you may borrow over the course of your undergraduate education. These amounts are determined by your dependent status. Dependent students are limited to borrowing no more than $31,000, of which no more than $23,000 may be in subsidized loans. Independent students are limited to borrowing no more than $57,500, of which no more than $23,000 may be in subsidized loans.

Annual Loan Limits
Grade Level(total earned credits)	Dependent Students	Independent Students(and Dependent Students whose parents are unable to obtain PLUS loans)
1st year undergraduate (0-29 credits)	$5500No more than $3500 of this amount may be in subsidized loans	$9500No more than $3500 of this amount may be in subsidized loans
2nd year undergraduate (30-59 credits)	$6500No more than $4500 of this amount may be in subsidized loans	$10,500No more than $4500 of this amount may be in subsidized loans
3rd year undergraduate and beyond (60-122+ credits)	$7500 per yearNo more than $5500 of this amount may be in subsidized loans	$12,500 per yearNo more than $5500 of this amount may be in subsidized loans
Prepatory coursework for entry into an undergraduate degree program	$2625 subsidized loan	$8625No more than $2625 of this amount may be in subsidized loans
Prepatory coursework for entry into a graduate/professional program or teacher certification coursework	$5500	$12,500No more than $5500 of this amount may be in subsidized loans
Maximum total debt from Subsidized and Unsubsidized Loans	$31,000No more than $23,000 of this amount may be in subsidized loans	$57,500No more than $23,000 of this amount may be in subsidized loans

Accept and Receive Your Federal Direct Loans

You must accept your offered Federal Direct loans online in the Financial Aid section of Self-Service Banner in the TUportal after receiving the email notification that the financial aid award is ready for review.

New Federal Direct loan borrowers must complete a Master Promissory Note and Entrance Interview.

Interest Rates and Fees

Students who borrow a student loan are responsible for repaying the loan, including interest. It is important that you understand how interest is calculated and the fees associated with your loan(s). Both of these factors will impact the amount you will be required to repay.

Subsidized vs Unsubsidized Loans
	Subsidized Direct Loan	Unsubsidized Direct Loan
Demonstration of Financial Need	Must demonstrate need	Not need-based
Interest Accrual	The federal government pays the interest on the loan while you are enrolled in school at least half time (6 credits), 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).	Interest begins accumulating as soon as funds are disbursed until the loan is paid in full. 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). NOTE: You are not required to pay the interest while you are in school, but Student Financial Services recommends you do.
Undergraduate Interest Rate	4.99% (for loans first disbursed on or after 7/1/22 and before 7/1/23) 5.50% (for loans first disbursed on or after 7/1/23 and before 7/1/24)	4.99% (for loans first disbursed on or after 7/1/22 and before 7/1/23) 5.50% (for loans first disbursed on or after 7/1/23 and before 7/1/24)
Origination FeesFor example, the fee on a $5,500 subsidized loan will be $58.13	1.057% for loans originated after October 1, 2022 and before October 1, 2023. The 2023-2024 origination fees are not yet released.	1.057% for loans originated after October 1, 2022 and before October 1, 2023. The 2023-2024 origination fees are not yet released.

Adjusting Your Subsidized and/or Unsubsidized Loan

Students can adjust their loan amounts by completing the Undergraduate Loan Change Request Form. Submit the form to our office through TUPortal upload on the SFS Channel on the Costs & Aid tab or via TUSafeSend to [click-for-email]. Students can also make changes to a single semester's loans via the Single-Semester Loan Change Form.

Students may cancel all or part of the loan within certain time frames. If the loan is cancelled after it is disbursed, then the removal of the funds may create a balance owed to the university. Do not return the excess funds to your lender or servicer if you intend to reduce the loan.

For changes to your Summer Subsidized or Unsubsidized Loan, please see the Summer Financial Aid Types & Eligibility page.

Net vs. Gross Federal Direct Loan Amounts

The Gross Amount of the loan is the full amount offered to the student-borrower on the financial aid offer and the amount that must be repaid with interest. The Net Amount of the loan is the amount of the loan, minus the origination fee, that is applied to the student's account at Temple. The Direct Subsidized and Unsubsidized loan fee will be proportionately deducted from each loan disbursement.

For example: A $3,500 subsidized loan is split into $1750 (gross amount) per semester, but $1721 (net amount) will pay to the account each semester.

Loan proration for graduating students

Students graduating in the Fall semester will have their federal direct loans prorated based on the number of credits for which they are enrolled. If enrolled less than 12 credits, this may reduce the amount of loans received in the Fall semester. If enrolled for more than 12 credits, this may increase the amount. Students should complete the Confirmation of Fall Graduation form as soon as possible and submit to our office to have their account adjusted to fall-only.

Federal Direct Loan Repayment

Disbursed federal student loans are assigned to a federal loan servicer. This servicer administers the loan and handles the loan's repayment. The US Department of Education will notify students of their assigned servicer after the funds are disbursed. Students can also see their servicer information on the student dashboard at studentaid.gov.

Students who graduate, leave school, or drop below half-time enrollment (less than 6 credits for undergraduate and less than 4.5 credits for graduate students), have a one-time six-month grace period before they are required to begin repayment. During this period, they will receive repayment information from their loan servicer, and will be notified of the first payment due date. Payments are usually due monthly. Students who drop below half-time will initiate the grace period and repayment, even if the student has not graduated yet.

Learn more about federal loan repayment.

There are several repayment options available that are designed to meet the individual needs of borrowers. Loan servicers can help borrowers understand which repayment options are available. Repayment terms range from 10 to 25 years, depending on the repayment plan.

Borrowers who cannot make their monthly payment should contact their loan servicer immediately. The loan servicer can help borrowers understand their options for keeping their loan(s) in good standing, such as changing the repayment option or enrolling in a forbearance to temporarily reduce the monthly payment.

Under certain conditions, borrowers may have their loans canceled, discharged, or forgiven.

Understand Default

Borrowers should not ignore delinquency or default notices from their loan servicer. Borrowers who do not make the monthly payment risk defaulting on their loan(s). Borrwers should contact their servicer immediately if they are having trouble making payments or are not able to pay on time. Take steps to avoid default.

Resolving Disputes

Students who need to dispute their current loan information should contact SFS. Students in repayment may need to contact their federal loan servicer instead.

Student Financial Services