Federal Direct Loan Eligibility

Federal Direct loan limits for dependent students

Federal Direct Loans have annual and aggregate limits based on a student’s grade level, dependency status, program, and prior borrowing. The amounts shown are maximums; actual eligibility may be lower. For information about loan types, eligibility requirements, accepting loans, enrollment requirements, interest, and repayment, visit Federal Education Loans.

Limits changed July 1, 2026. Undergraduate annual and aggregate limits did not change. New graduate, professional, and lifetime limits apply unless a student qualifies for the federal transition exception described below.

Dependent Undergraduate Studies

Year in School Maximum Subsidized
(If eligible)
Maximum Combined
(subsidized and/or unsubsidized)
Freshman (0-29 credits) $3,500 $5,500
Sophmore (30-59 credits) $4,500 $6,500
Junior & Senior (60+ earned credits) $5,500 $7,500
Second Bachelor's Degree $5,500 $7,500
Aggregate Limit $23,000 $31,000

No more than $23,000 of the $31,000 aggregate limit may be subsidized. A dependent student whose parent is denied a Parent PLUS Loan because of adverse credit or meets certain exceptional-circumstances criteria may qualify for the independent annual limits below.

Independent Undergraduate Students

Year in School Maximum Subsidized
(if eligible)
Maximum Combined
(subsidized and/or unsubsidized)
Freshman (0–29 earned credits) $3,500 $9,500
Sophomore (30–59 earned credits) $4,500 $10,500
Junior and Senior (60+ earned credits) $5,500 $12,500
Second Bachelor’s Degree $5,500 $12,500
Aggregate Limit $23,000 $57,500

No more than $23,000 of the $57,500 aggregate limit may be subsidized. Prior undergraduate Subsidized and Unsubsidized Loans count toward the applicable aggregate limit.

Undergraduate Program Limits

USU students in eligible certificate programs are generally limited to freshman-level amounts; federal proration may reduce the amount for programs shorter than an academic year. Associate degree students may receive up to the sophomore limit after earning at least 30 credits.

Graduate and Veterinary Medicine (Professional) Students

For periods of enrollment beginning on or after July 1, 2026, the following limits apply to students who do not qualify for the transition exception.

Student Type Annual Direct Unsubsidized Limit Aggregate Graduate/Professional Limit
Graduate $20,500 $100,000
Veterinary Medicine (D.V.M.) $50,000 $200,000

The graduate limit counts Subsidized and Unsubsidized Loans borrowed for graduate study.

The professional limit counts those loans borrowed for graduate or professional study. Undergraduate and Grad PLUS Loans do not count toward these aggregate limits, but may count toward the lifetime maximum below.

Transition Exception

Students who were enrolled in the same program at USU on June 30, 2026, and received a Direct Loan disbursement for that program before July 1, 2026, may qualify for the federal transition exception. Students who qualify remain under the previous limits and cannot elect the new limits.

Student Type Annual Direct Unsubsidized Limit Previous Aggregate Limit
Graduate $20,500 $138,500
Veterinary Medicine (D.V.M.) $40,500* $224,000

*USU’s D.V.M. amount for a standard nine-month academic year. Federal limits for eligible health professions programs may vary with program length. The $138,500 and $224,000 limits include applicable prior undergraduate Subsidized and Unsubsidized Loans.

The exception generally continues for the lesser of three academic years or the student’s remaining published program length. Transferring, withdrawing or otherwise ceasing enrollment, or beginning a different program may end the exception. USU determines transition eligibility.

Lifetime Maximum

Limit Maximum
Applicable federal loans borrowed as a student $257,500

This maximum includes applicable undergraduate, graduate, and professional loans, including prior Grad PLUS and Perkins Loans. It excludes Parent PLUS borrowed by a parent, consolidation loans themselves, and excluded health profession loans.

The $257,500 lifetime maximum generally does not reset when loans are repaid, forgiven, canceled, or discharged. It does not apply during the transition exception, but applicable previous borrowing counts after the exception ends.

Important Limit Information

  • Loan eligibility cannot exceed the student’s cost of attendance minus other financial assistance.
  • Annual limits include borrowing at all schools in the same academic year; fall, spring, and summer share one limit.
  • Enrollment level, program length, prior borrowing, and required proration may reduce eligibility.
  • Federal requirements or court orders may change these limits. USU will adjust awards and notify affected students when required.