Federal Funding

Student Loans

Students wishing to apply for a loan within the Federal Direct Loan Program must file a Free Application for Federal Student Aid (FAFSA) each academic year. Upon filing this form, the resulting Student Aid Record (SAR) or Institutional Student Information Record (ISIR) must be filed with the Office of Financial Aid.

When filing the FAFSA, students should make sure to utilize the FDU Federal School Code: 002607.

The Federal Direct Loan Program allows the student to defer repayment while enrolled at least half-time. There are a number of repayment options with which to repay the loan (standard repayment is 10 years), with a minimum payment of $50.00 per month after graduation, withdrawal, or dropping to less than half-time enrollment.

Federal Direct Graduate Unsubsidized Loan

The Federal Direct Unsubsidized Loans are available to matriculated students enrolled at least half-time.

• A graduate student may borrow up to a maximum of $20,500.00 per academic year based on the Cost of Education and less any other financial aid received. 
• Professional students (those in the pharmacy and clinical psychology programs) may borrow $50,000 per academic year based on the Cost of Education and less any other financial aid received.
• The interest rate on an unsubsidized loan is fixed at 8.07%, and a 1.057% loan fee is taken at the time of disbursement.
• A student may choose to either pay or accrue interest while attending school. Interest that is not paid is capitalized (added to the principal amount borrowed).

The cumulative aggregate Federal Direct Loan debt for those graduates who borrowed before July 1, 2026, is $138,500; no more than $65,500 of this amount may be in subsidized loans. This graduate aggregate limit includes all federal loans received for undergraduate study, but also applies to graduate borrowing only if the student did not incur undergraduate federal student loans.

• Beginning on July 1, 2026, the aggregate limit for first-time borrowers’ graduate students has been reduced to $100,000.
• Professional students’ aggregate limit is $200,000.
• The new aggregate limits do not include federal loans for undergraduate study.

Students must complete Loan Entrance Counseling and a Master Promissory Note (MPN) prior to borrowing at studentaid.gov/. The Loan Entrance Counseling provides required information about a borrower’s rights and responsibilities.

Federal Direct Plus Loan

New graduate students enrolling after June 30, 2026, will no longer be eligible to borrow under the federal graduate PLUS loan program. However, there is a legacy provision for continuing students provided:

• They have received at least one federal loan disbursement for that same program before July 1, 2026, and
• They remain in the same program with no interruption in enrollment
• A change in academic program or an interruption in enrollment will end their legacy status.
• Legacy students remain eligible for up to 3 academic years or the remainder of their expected time to degree completion, whichever is shorter.

The Federal Direct PLUS Loan is a credit-based loan program that enables approved borrowers to borrow up to the cost of education, less any other financial aid received. Repayment of the PLUS Loan begins 60 days after disbursement of the funds to the University, but may be deferred while enrolled at least half-time.

To be eligible for a Federal Direct PLUS loan, the student must file the FAFSA and may not be in default on any federal student loans. For the 2026-2027 academic year, the Federal Direct PLUS Loan has a fixed interest rate of 9.07%, and a loan fee of 4.228% is taken at the time of disbursement. Credit decisions are determined by the U.S. Department of Education when the student applies via studentaid.gov/. Credit approvals will expire after 90 days.

More information about the Direct Loan Program, including repayment plans, calculators, and borrowers’ rights and responsibilities, may be found online at https://studentaid.ed.gov/.

Federal Loan Reduction Provisions

Beginning on July 1, 2026, federal direct graduate unsubsidized loans and graduate PLUS loans are subject to reduction based on the number of credits a student is enrolled in annually.

• All unsubsidized and graduate PLUS annual loan amounts will be reduced based on enrollment status for those less than full-time (fewer than 9 credits per semester; 18 credits annually).
• Withdrawing from a course once the semester has begun can affect a student’s eligibility for future semesters within the same academic year.
• If a loan has not been disbursed, the loan may be recalculated and reduced before disbursement.
• If the loan has already been disbursed, eligibility in the next semester within the academic year may be reduced even if the student enrolls in 9 or more credits.
• A graduate student’s total enrollment for the full academic year must be 18 credits or greater to avoid a reduction in their loan eligibility.

See the following chart for a snapshot of the recent loan changes.

Upcoming Changes to Direct Loans

Veterans’ Educational Benefits

Some veterans are eligible for monthly allowances (paid directly to the veteran) paid by the United States Veterans Administration. Funding eligibility is based on enrollment status as determined by the number of credits for a particular semester. Veterans applying for benefits must complete the Veteran Program Card at the beginning of each semester and submit it to the Office of Veterans Affairs.

Students who contributed to the Veterans Educational Assistance Program (VEAP-Chapter 32) may be eligible for benefits. In addition, dependents and spouses of veterans who died of service-related causes may also be eligible for benefits. Any questions regarding veterans and dependents of veterans’ benefits should be directed to the Office of Veterans Affairs at the Metropolitan Campus at (201) 692-7085.