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Moravian University

Federal Direct Loans

Federal Direct Loans are available to all eligible students who complete a Free Application for Federal Student Aid (FAFSA). We will offer an eligible student the amount of Federal Direct Loan that they are eligible for when we prepare their Financial Aid Award.

Subsidized vs. Unsubsidized

Subsidized

Eligibility for Direct Subsidized Loans is based on a student’s financial need. A subsidized loan will not accrue interest while the student is enrolled in school at least half-time and through the grace period.

Unsubsidized

All students are eligible for Unsubsidized Direct Loans, regardless of financial need. An unsubsidized loan will accrue interest beginning at disbursement. Interest may be paid or deferred until the loan goes into repayment.

Rates & Fees

For 2021-2022:

Federal Direct Subsidized and Unsubsidized Loans have a fixed interest rate of 3.73% for loans disbursed July 1, 2021 to June 30, 2022. This loan also has an up-front fee, referred to as an "origination fee." The origination fee for loans disbursed on or after October 1, 2021 and before October 1, 2022 is 1.057%.

For 2020-2021:

Federal Direct Subsidized and Unsubsidized Loans have a fixed interest rate of 2.75% for loans disbursed July 1, 2021 to June 30, 2022. This loan also has an up-front fee, referred to as an "origination fee." The origination fee for loans disbursed on or after October 1, 2020 and before October 1, 2021 is 1.057%.

Loan Limits

For Dependent Students

Class Level Base Amount 
(May be Subsidized
and/or Unsubsidized)
Additional 
Unsubsidized 
Amount
Annual 
Loan Limit
Freshman $3,500 $2,000 $5,500
Sophomore $4,500 $2,000 $6,500
Junior or Senior $5,500 $2,000 $7,500
Post-Baccalaureate 
Teacher Certification
$5,500   $5,500

No more than $23,000 may be subsidized over the course of your undergraduate education. Dependent students cannot exceed a total of $31,000 in Direct Loan borrowing. No more than $23,00 may be subsidized. 

If your parent applies for a PLUS Loan and is denied, the student is eligible for an additional $4,000 of Direct Unsubsidized Loan at the freshman and sophomore level or $5,000 of Direct Unsubsidized Loan at the junior and senior level. These additional loans do not count against the $31,000 maximum allowed to borrow.

For Independent Students 

Class Level Base Amount 
(May be Subsidized
and/or Unsubsidized)
Additional 
Unsubsidized 
Amount
Annual 
Loan Limit
Freshman $3,500 $6,000 $9,500
Sophomore $4,500 $6,000 $10,500
Junior or Senior $5,500 $7,000 $12,500
Post-Baccalaureate 
Teacher Certification
$5,500 $7,000 $12,500

Independent Students may borrow a maximum of $57,500 in Direct Loans for their undergraduate education with no more than $23,000 being subsidized. 

* For more information, visit studentaid.gov

Accepting Your Federal Direct Loans

New Students & First Time Loan Borrowers

First time borrowers of Federal Direct Loans must complete Entrance Counseling and a Master Promissory Note (MPN) at studentaid.gov. You will need to know your student FSA ID to log into this site.

To complete your Entrance Counseling:

To complete your MPN:

Note: Transfer students who have borrowed through the Direct Loan program at their previous institution do not need to complete a new MPN or Entrance Counseling as long as the loan requirement is not expired. 

Miscellaneous Information

  • In response to the COVID-19 emergency relief period, the interest rate on all Direct Loans has been temporarily set at 0% until at least January 31, 2022. Once the COVID-19 emergency relief period ends, the rates as described in this announcement will be in effect for loans first disbursed on or after July 1, 2021.
  • The standard 10-year repayment period begins 6 months after graduation or the student ceases to be enrolled at least half-time.
  • For students who are new borrowers on or after July 1, 2013, the period during which students may borrow Direct Subsidized Loans and the period during which the in-school interest subsidy may be provided, will be limited to 150% of the published length of their educational program.
  • Any student is able to view their loan history by logging on to studentaid.gov.
  • Students are not required to borrow Federal Direct Loans, or required to borrow the maximum amount of loan offered. If you wish to decline or reduce your Federal Direct Loan eligibility, please complete a Loan Adjustment Form found on the Financial Aid Forms page of our website.