Federal Education Loans
Federal Loans
Federal Direct Loans are educational loans provided by the U.S. Department of Education to help eligible students pay for college. Unlike grants and scholarships, loans must be repaid with interest.
Eligibility for federal student loans is determined each academic year based on federal regulations, your FAFSA information, enrollment, and other eligibility requirements.
Important: Federal student loan programs changed beginning with the 2026-2027 academic year. Available loan programs and borrowing eligibility may differ from previous years. Utah State University will determine your eligibility based on current federal law and guidance from the U.S. Department of Education.
Federal Direct Student Loans
Federal Direct Student Loans are available to eligible undergraduate, graduate, and professional students. These loans generally offer fixed interest rates and flexible repayment options compared to many private education loans.
USU participates in the William D. Ford Federal Direct Loan Program, which includes two types of student loans:
Direct Subsidized Loans
Direct Subsidized Loans are available to eligible undergraduate students who demonstrate financial need through the FAFSA. The U.S. Department of Education pays the interest on subsidized loans while you are enrolled at least half time and during certain authorized periods.
Direct Unsubsidized Loans
Direct Unsubsidized Loans are available to eligible undergraduate, graduate, and professional students. Financial need is not required. Interest begins accruing when the loan is disbursed. Students may choose to pay the interest while enrolled or allow it to accrue.
Applying for Federal Student Loans
Complete the Free Application for Federal Student Aid, or FAFSA, each academic year to be considered for federal student loans. After USU receives your FAFSA and all required documents are complete, Student Financial Support will determine your eligibility for federal aid. Students who are eligible for federal loans will receive a financial aid offer through MyUSU.
Accept or Decline Federal Student Loans
You are not required to accept the full loan amount offered to you. You may accept all, accept a reduced amount, or decline the loan. Federal loan eligibility may change if your enrollment, academic program, financial aid, cost of attendance, or other eligibility information changes before disbursement.
How to Accept or Decline Your Loans
- Log in to my.usu.edu
- Select Financial Aid
- Choose the appropriate aid year
- Review your financial aid offer
- Select the federal loan you want to accept or decline
- Choose one of the following options:
- Accept the full amount
- Accept reduced amount
- Decline the loan
- Submit your selection
- Review any outstanding loan requirements shown in MyUSU
Please be aware:
- You must accept your full Direct Subsidized Loan offer before accepting any portion of a Direct Unsubsidized Loan.
- You are not required to accept the full amount offered. Borrow only what you need.
- Loans accepted for the full academic year are generally divided equally between the fall and spring semesters.
- Loan offers are initially based on anticipated enrollment and federal eligibility requirements.
- Beginning with the 2026–2027 academic year, the amount you may borrow may be reduced if you enroll less than full time.
- Your loan eligibility may also change if your enrollment, academic program, cost of attendance, other financial assistance, or federal eligibility changes.
- A reduction or cancellation of your loan may create or increase a balance on your student account. You are responsible for reviewing and paying any remaining balance.
- Accepting a loan does not guarantee payment. All federal eligibility and loan requirements must be completed before funds can be disbursed.
To cancel or change a loan after you have submitted your decision, please contact Student Financial Support.
Complete Federal Loan Requirements
Before your first Federal Direct Loan can be disbursed, you must complete all required federal loan steps. First-time federal student loan borrowers generally must complete:
Returning borrowers generally do not need to complete these requirements again unless notified.
To review or complete your requirements:
- Log in to MyUSU.
- Select Financial Aid.
- Choose the appropriate aid year.
- Review your outstanding requirements.
- Follow the link provided to complete Entrance Loan Counseling or the Master Promissory Note.
- Return to MyUSU and confirm that all requirements have been completed.
Federal loans cannot disburse until all required steps are complete, and the student remains eligible.
Parent PLUS Loans
Parents of dependent undergraduate students may apply for a Federal Direct Parent PLUS Loan to help cover remaining educational expenses after other financial aid has been considered.
Parent PLUS Loans require a credit review by the U.S. Department of Education. Eligibility and maximum borrowing amounts are determined under current federal law and may vary based on the student’s remaining educational costs and other eligibility factors.
Approval is not guaranteed, and additional steps may be required, like a separate Master Promissory Note.
Graduate and Professional Students
Graduate and professional students may be eligible for Federal Direct Unsubsidized Loans. Eligibility and annual borrowing limits are determined by federal law and may vary by academic program and other eligibility factors. Students who need additional funding beyond their federal loan eligibility may consider private education loans.
Private Education Loans
Private education loans are available through private lenders and may help cover educational expenses not met by other financial aid. You can learn more about the Differences between Federal Loans x Private Loans.
Students are encouraged to maximize grants, scholarships, and federal loan eligibility before considering private education loans. Private loans are subject to lender approval and typically require a credit review.
Emergency Student Loans
An emergency loan is a low interest, short term loan for USU students as a means of temporary financial assistance.
- This loan cannot be used for tuition and is not available if the student is still using the TouchNet payment plan.
- Students may borrow a maximum of $400.
- Only one emergency loan is available during a semester; this loan is not available between semesters.
- These loans are not federal student loans and have separate eligibility requirements.
Eligibility
Undergraduate students: enrolled in 6 credits, minimum 2.0 GPA
Graduate students: enrolled in 5 credits, minimum 3.0 GPA
Must not have any other outstanding USU debts or payment plans
How To Apply
Please contact our office to help you get started on the application.
Borrow Responsibly
Borrow only what you need. Student loans must be repaid with interest. Before accepting a loan, review your educational expenses, expected future borrowing, and repayment responsibilities. Contact Student Financial Support if you have questions about your loan eligibility, available loan types, or how much to borrow.
You can also meet with one of our Financial Coaches to help you decide if borrowing is the best solution for your needs.