Direct Subsidized Loans are available only to undergraduate students who have financial need. Direct Unsubsidized Loans are available to both undergraduates and graduate or professional degree students. You are not required to show financial need to receive a Direct Unsubsidized Loan.
Direct Unsubsidized Loans are available to undergraduate, graduate, or professional degree students enrolled at least half-time at a school that participates in the Direct Loan Program. Financial need is not required to qualify.
Yes, it's possible to be denied a student loan. While most federal student loans don't require a credit check, there are other eligibility requirements you'll need to meet.
There's no official income cutoff to qualify for federal student aid. Yes, your family's annual income influences your aid package, but other factors, such as family size and year in school, also help determine your level of aid.
Subsidized Loans are loans for undergraduate students with financial need, as determined by your cost of attendance minus expected family contribution and other financial aid (such as grants or scholarships).
What income is too high for FAFSA? There is no income that is too high to file a FAFSA. No matter how much you make, you can always submit a FAFSA. Eligibility for need-based financial aid increases as the cost of attendance increases, so even a wealthy student might qualify for financial aid at a higher-cost college.
If you don't meet baseline eligibility requirements, or if you've previously defaulted on a loan, you may not be approved for a federal student loan. You must maintain "satisfactory progress" in school to be approved for student loans. You can take steps to regain or improve your eligibility for student loans.
Subsidized student loans can save you money, given that you don't have to pay interest for as long as you're in school, in the military, or within the first six months after graduation. However, these loans can be hard to get since eligibility depends on financial need.
Direct PLUS Loans are federal loans that graduate or professional students and parents of dependent undergraduate students can use to help pay for college or career school.
Once you graduate, drop below half-time enrollment, or leave school, your federal student loan goes into repayment. However, if you have a Direct Subsidized, Direct Unsubsidized, or Federal Family Education Loan, you have a six-month grace period before you are required to start making regular payments.
You must maintain Satisfactory Academic Progress (SAP) and have a status of Good or Warning for terms applying for loans and have a 2.0 Cumulative GPA at the time of Disbursement.
If you're an undergraduate, the maximum combined amount of Direct Subsidized and Direct Unsubsidized Loans you can borrow each academic year is between $5,500 and $12,500, depending on your year in school and your dependency status.
Drawbacks of Subsidized Loans
Subsidized loans can be really helpful if you're eligible, but not all students are. Plus, the amount you can borrow is limited per academic year. So, even if you qualify for one, a subsidized loan might not get you all the money you need for college.
Both Direct Subsidized Loans and Direct Unsubsidized Loans are offered to students regardless of their credit history and neither will result in a hard inquiry. A Direct PLUS Loan, however, does require a credit check, so if you're considering one, your credit scores may take a slight hit.
Pell Grants are awarded based on financial need and, unlike loans, typically don't have to be repaid. Applicants must complete a Free Application for Federal Student Aid (FAFSA) every year in order to qualify. The school determines how much Pell Grant money (if any) a student may receive, up to the federal maximum.
If you have applied for a federal loan, it may take 1-2 weeks to process depending on if the FAFSA was completed online or mailed in, whereas a private loan lender could take a few days to several weeks to process.
There is no set income limit for eligibility to qualify for financial aid through. You'll need to fill out the FAFSA every year to see what you qualify for at your college. It's important to make sure you fill out the FAFSA as quickly as possible once it opens for the following school year.
Federal student loans are the most common type of student loan. There are four main types of federal student loans: subsidized, unsubsidized, parent loans, and consolidation loans. There are also private student loans, which generally have higher interest rates and stricter requirements.
Lenders may look at your employment history, credit score, debt-to-income ratio, and enrollment status at your school. One of the most common reasons why a student might not qualify for a private student loan is because they don't meet their lender's FICO® Credit Score criteria.
The Pell Grant is indeed a valuable financial aid resource for many college students. While there isn't a strict maximum family income limit for Pell Grant eligibility, the grant is typically awarded to students with financial need, particularly those with an annual family income of $60,000 or below.
Don't worry, this is a common question for many students. The good news is that the Department of Education doesn't have an official income cutoff to qualify for federal financial aid. So, even if you think your parents' income is too high, it's still worth applying (plus, it's free to apply).
With only one child attending college normally an income above $125K will disqualify you from financial aid qualification at a public university, and about double that, or $250K in income will disqualify you from garnering financial aid.
Undergraduate students who have not completed a Bachelor's or professional degree and who meet other Pell Grant Program criteria are eligible to receive an award between $740 to $7,395 in the 2024-2025 academic year (July 1, 2024 - June 30, 2025).