Available to undergraduate students. To be eligible, students must complete the Free Application for Federal Student Aid (FAFSA) and show financial need. The loan is interest free as long as student is enrolled at least half time. Repayment at a fixed interest rate of 3.4% for loans disbursed after July 1, 2012. A 1% Origination Fee will be deducted from each semester's loan amount.
The interest subsidy during the six month grace period is eliminated for new Direct Loans made on or after July 1, 2012 and before July 2, 2014. The repayment period still begins 6 months after the student is no longer enrolled at least half-time, but interest will accrue during those 6 months of grace period, and will be payable by the borrower rather than subsidized by the federal government.
The maximum amount students may borrow is:
| Time frame | Subsidized Amount Limit | Additional Unsubidized Amount | Total Annual Maximum subsidized + unsubsidized |
| First year (1 - 29 credits) | $3,500 | $2,000 | $5,500 |
| Second year (30 - 59 credits) | $4,500 | $2,000 | $6,500 |
| Third year and beyond (60 or more credits) | $5,500 | $2,000 | $7,500 |
| Aggregate Borrowing Limit | $31,000 (no more than $23,000 can be subsidized) |
Independent Students - the academic year borrowing limits are as follows:
| Time Frame | Subsidized Amount Limit | Total Annual Maximum: subsidized + unsubsidized |
| First year (1 - 29 credits) | $3,500 | $9,500 |
| Second year (30 - 59 credits) | $4,500 | $10,500 |
| Third year and beyond (60 or more credits) | $5,500 | $12,500 |
| Aggregate Borrowing Limit | $57,500 (no more than $23,000 can be subsidized) |
Graduate Students - the academic year borrowing limits are:
| Time Frame | Total Annual Maximum: subsidized + unsubsidized |
| Every Year | $20,500 |
| Aggregate Borrowing Limit | $138,500 (no more than $65,500 can be subsidized) |