Federal Direct Loan

With a Subsidized Direct Loan, the federal government pays the interest on the loan while the student is in school at least half-time and during authorized periods of deferment. This means that no interest that you have to pay back is building on the loan while you are enrolled in atleast 6 credits.

For Unsubsidized Direct Loans, students are charged interest from the time the loan is disbursed until it is paid in full. Borrowers may choose to pay the interest while they are in school, or defer payments until the end of their grace period. Any accrued interest will be capitalized and added to the principal amount of the loan at repayment, increasing the amount that must be repaid. If students choose to pay the interest as it accumulates, the long term cost of the loan will be less.

Repayment on Direct Loans begins six months after a student graduates, withdraws, leaves school, or drops below half-time status.

View Loan Repayment Simulator

The Additional Unsubsidized Direct Loan is available to students who are either classified as “independent” according to federal guidelines, or whose parents are denied the Direct Parent PLUS Loan by the Department of Education during the application process. Additional Unsubsidized Direct Loan amounts are as follows:

The maximum loan amount for which a student may receive in the Direct Subsidized and Unsubsidized Loan program is determined by the student’s grade level. Grade level is determined based on the number of credits a student has completed. 

Cal Lutheran reviews aggregate loan limits prior to awarding loans for the academic year. Students can check the amount of loans they have taken out during their academic careers at studentaid.gov.

Dependent Undergraduate Students

Independent Undergraduate Students

Students enrolling mid-year in an academic program, may be eligible to receive the full amount of Direct Loan funds up to the annual loan limits as specified by the federal government.

Please Note: this may result in receipt of loan funds at a higher amount in a single term due to a mid-year start date. If you later intend to enroll for all terms in an academic year, your loan funds will be equally distributed over the terms you are enrolled in. If you have questions about how this will impact any future awards, please contact the Office of Financial Aid.

All Direct Subsidized and Unsubsidized Loans are subject federal origination fee which is subtracted from the loan at the time of disbursement.  

Repayment on Direct Loans begins six months after a student graduates, withdraws, leaves school, or drops below half-time status.

View Loan Repayment Simulator

Graduate and doctoral students are eligible to take out up to $20,500 per year in Direct Unsubsidized Loans.

Students enrolling mid-year in an academic program, may be eligible to receive the full amount of Direct Unsubsidized Loan funds up to the annual loan limits as specified by the Department of Education. 

Students who borrow Direct Loans have aggregate lifetime loan limits. This means that there is a maximum a student may take out in Direct Loans for his or her educational career. For Graduate and Doctoral students, the lifetime loan limit is $138,500. Of this amount, up to $65,000 may be subsidized. Students can check the amount of loans they have taken out during their academic careers at studentaid.gov.

Please Note: this may result in receipt of loan funds at a higher amount in a single term due to a mid-year start date. If you later intend to enroll for all terms in an academic year, your loan funds will be equally distributed over the terms you are enrolled in. If you have questions about how this will impact any future awards, please contact the Office of Financial Aid.

All Direct Unsubsidized Loans are subject federal origination fee which is subtracted from the loan at the time of disbursement.