Federal Direct Loans
Student loans are financial obligations that must be repaid. Students are encouraged to only borrow what they need to cover their educational expenses. Click here for the most updated interest rate information for Federal Loans
Students must be enrolled in at least half-time (6 units for undergraduate students) to receive Federal Loans.
Click here to learn how to accept your loan via your MyCSUEB Account
Federal Subsidized Direct Loans
Federal Subsidized Direct Loans are awarded to students that demonstrate financial need. Interest is deferred while the student is enrolled in school on at least a half-time basis (6 or more credits) and during the grace period.
Repayment of loan principal and interest begins six months after enrollment falls below half-time, and is usually calculated over a maximum 10-year period.
Federal Unsubsidized Direct Loans
Students that do not qualify for need-based assistance may qualify for the Federal Unsubsidized Direct Loan. Unlike the Federal Subsidized Direct Loans, this loan type will accrue interest during enrollment, the grace periods, and during periods of repayment or deferment. The borrower may make interest-only payments while in school or can request that the loan servicer add the interest to the principal amount of the loan.
Loan Proration (as of 2026/2027)
Undergraduate Students enrolled less than full-time (12 units) per semester will be subject to the new 26/27 federal Loan Proration requirements.
Graduate students enrolled in less than full-time status (8 units) per semester will be subject to the new 26/27 federal Loan Proration requirements.
Proration Formulas
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Undergraduate Loan Proration Formula: |
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Credit Hours Enrolled ÷ 24 Credit Hours in an Academic Year x Annual Direct Loan Limit
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Graduate Loan Proration Formula:
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Credit Hours Enrolled ÷ 16 Credit Hours in an Academic Year x Annual Direct Loan Limit
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Federal Direct PLUS Loans (Parents/Graduate Students)
To receive a Direct PLUS Loan, you must be a graduate student enrolled at least half-time at an eligible school in a program leading to a graduate degree or be the parent of a dependent undergraduate student enrolled at least half-time. Additionally, you must not have an adverse credit history.
IMPORTANT UPDATES:
Graduate PLUS Loan
New graduate students starting with the 2026-2027 year will no longer be able to borrow Federal Direct Graduate PLUS Loans beginning July 1, 2026. Current students that enrolled in a graduate program for the 2025-2026 year or before may continue to borrow Graduate PLUS Loans for up to 3 more years (2026-2027, 2027-2028, and 2028-2029), or until graduating from their current program of study (whichever comes first).
Parent PLUS Loan Limits
Parent PLUS Loan borrowers will have a new annual academic year limit of $20,000, and an aggregate (lifetime) limit of $65,000 beginning July 1, 2026.
Parents who borrowed in 2025-2026 or before can continue to borrow under current limits for 3 years (2026-2027, 2027-2028, and 2028-2029) or until their student graduates (whichever comes first.)
Entrance Counseling
If you are a first-time borrower of a Direct Subsidized, Unsubsidized, or Graduate PLUS Loan, you are required to complete entrance counseling at studentaid.gov. During entrance counseling, you will learn what a direct loan is, how the process works, your rights and responsibilities as a borrower, how to manage your educational expenses and about other financial resources that may help pay for your education.
Loan Agreement (MPN)
If you are a first-time borrower of a Direct Subsidized, Unsubsidized, or Graduate PLUS Loan, you are required to also complete a Loan Agreement / Master Promissory Note (MPN) at studentaid.gov. The MPN is a legal document through which you promise to repay your Direct Loans and any accrued interest and fees to the Department of Education. It also explains the terms and conditions of your loans. The Direct Loan MPN can be used to make loans for up to 10 years.
Loan limits for undergraduate and graduate students are detailed respectively in the following two tables.
| Dependent 1 | Independent 2 | |
|---|---|---|
| First Year - Freshman | $5,500 ($3,500)3 | $9,500 ($3,500) |
| Second Year - Sophomore | $6,500 ($4,500) | $10,500 ($4,500) |
| Third and Fourth Year - Junior and Senior | $7,500 ($5,500) | $12,500 ($5,500) |
| Credential and Unclassified Post Baccalaureate | $5,500 ($5,500) | $12,500 ($5,500) |
| Aggregate | $31,000 ($23,000) | $57,500 ($23,000) |
1 Except those students whose parents are denied a PLUS loan.
2 These limits also apply to dependent students whose parents are denied a PLUS loan.
3 The numbers in parentheses represent the possible maximum Subsidized loan amounts.
| Subsidized and Unsubsidized Loans for loan periods beginning before July 1, 2016 | Subsidized and Unsubsidized Loans for loan periods beginning on or after July 1, 2016 | |
|---|---|---|
| Each Year | $20,500 ($8,500) | $20,500 |
| Aggregate | $138,500 1($65,500) | $138,000 1($65,500) |
1 The aggregate amounts for graduate students include loans borrowed during undergraduate study.