Federal Direct Subsidized & Unsubsidized Loans

Tulane participates in the Direct Loan Program. The federal government through the U.S. Department of Education is your lender for the Direct Loan Program. Federal Direct Subsidized and Unsubsidized Loans are offered to eligible students who are enrolled at least half-time (based on the standards for full-time in each division) and who meet all other eligibility criteria.

Eligible undergraduate students who have financial need may be offered a Direct Subsidized Loan, on which no interest will be charged before repayment begins (except during the grace period for loans made between July 1, 2012 and July 1, 2014) or during authorized periods of deferment. Interest is charged during the repayment period on a Direct Subsidized Loan.

Regardless of financial need, eligible students may qualify for a Direct Unsubsidized Loan. Interest on the Direct Unsubsidized Stafford Loan will begin to accrue when the loan is disbursed and be capitalized to the principal balance when the repayment period begins.

Please note that Tulane Financial Aid cannot process federal loans once the aid period for which the loans are intended has ended, or after the student has ceased attendance, whichever comes first. This deadline is in effect for federal educational loans for either a student or their parents. The federal deadline for federal educational loan origination is by the end of the award period for the loan, so federal educational loans in virtually every case must have disbursed while the student is still in attendance in the academic period for which the loans are intended. We strongly recommend that students and/or parents communicate and finalize their borrowing intentions at least one month prior to the end of each semester

How can I get a Direct Loan?

View the Steps for getting Federal Direct Loans >>>

Receiving the Direct Subsidized or Unsubsidized Loan

Federal Direct loans for an academic year are generally disbursed in two equal installments. Typically, students who are enrolled for the standard academic year will receive their first disbursement in August and their second disbursement in January. Funds are automatically credited to student Tulane Accounts Receivable accounts after students confirm their registration for the semester and continue to meet all eligibility requirements. Students can check their student accounts on-line by following Accounts Receivable website instructions.

Annual and Aggregate Subsidized and Unsubsidized Direct Loan Limits

Each aid year, eligible students may borrow a combination of Subsidized and Unsubsidized Federal Direct Loans each year up to a base amount limit (or Cost of Attendance minus other aid, whichever is less) plus an additional Federal Unsubsidized Direct Loan amount (as long as Cost of Attendance minus other aid is not exceeded). Direct Loan eligibility will be packaged by the University Financial Aid Office. Subsidized Direct Loans will additionally be limited to being 150% of an eligible student's credential program length for new borrowers on or after 7/1/13.

For Tulane students enrolled as regular students in eligible programs, annual Subsidized and Unsubsidized Direct Loan limits are currently as follows:


Dependent Students Except Students Whose Parents are denied a PLUS Loan

Year Base Amount Additional Unsubsidized Loan Amount
Freshman $3,500 $2,000
Sophomore $4,500 $2,000
Junior/Senior $5,500 $2,000

Independent Undergraduate Students & Undergraduate Dependent Students Whose Parents are denied a PLUS Loan

Year Base Amount Additional Unsubsidized Loan Amount
Freshman $3,500 $6,000
Sophomore $4,500 $6,000
Junior/Senior $5,500 $7,000

Graduate and Professional Students other than Graduate Public Health

Unsubsidized Loan Amount: $20,500


Graduate Public Health Students

Unsubsidized Loan Amount: $33,000


Medical Students Pursuing an MD Degree

Unsubsidized Loan Amount: $40,500

Aggregate Loan Limits


Undergraduate Dependent Students (whose parents were not denied a PLUS loan)

$31,000 (no more than $23,000 of which can be subsidized)


Undergraduate Independent Students (and dependent students whose parents were denied a PLUS loan)

$57,500 (no more than $23,000 of which can be subsidized)


Graduate and Professional Students Other than Graduate Public Health Students

$138,500 (no more than $65,500 of which can be subsidized; NOTE: graduate-level students will be ineligible for new Subsidized Loans as of July 1, 2012)


Medical Students Pursuing an MD Degree or Graduate Public Health Students

$224,000 (no more than $65,500 of which can be subsidized; NOTE: graduate-level students will be ineligible for new Subsidized Loans as of July 1, 2012)

Fees on Subsidized and Unsubsidized Federal Direct Loans

Sequestration causes fees to minimally change during each federal fiscal year to be more than the original 1% fee on Direct Subsidized or Unsubsidized Loans: currently, for loans first disbursed on or after October 1, 2020 (but before October 1, 2025), the fee rate is 1.057%.

Likely Interest Rates for Direct Loans First Disbursed on or between July 1, 2024 and June 30, 2025 (these will be fixed-rate loans)*

  • Direct Subsidized Loans for undergraduate students: 6.53%
  • Direct Unsubsidized Loans for undergraduate students: 6.53%
  • Direct Unsubsidized Loans for graduate students: 8.08%

Interest Rates for Direct Loans First Disbursed on or between July 1, 2023 and June 30, 2024 (these will be fixed-rate loans)*

  • Direct Subsidized Loans for undergraduate students: 5.50%
  • Direct Unsubsidized Loans for undergraduate students: 5.50%
  • Direct Unsubsidized Loans for graduate students: 7.05%

*Current law (The Bipartisan Student Loan Certainty Act of 2013) states that the interest rate will be based on the high yield of the 10-year Treasury note at the final auction held prior to June 1 preceding the July 1 of the year for which the rate will be effective, plus a statutorily defined "add-on," subject to an interest rate cap, and that the loan will be a fixed-rate loan. The fixed interest rate for the next year will not be known until after the final auction occurs.

Repayment of the Federal Direct Loan

The six months after a student graduates, leaves school, or drops below half-time enrollment is called the "grace period". During the grace period, students will not have to make any payments on the outstanding principal balance, but will be charged interest (except for Subsidized Loans disbursed before 7/1/12 or after 7/1/14). During the grace period, the servicer will send the student information about repayment, including the date repayment begins. Prepayment may be made on Federal Direct Loans without penalty. Students are responsible for beginning payment on time, regardless of if they receive this information. Students may discuss repayment plans with their servicer, including how often they may switch plans.

Withdrawing from the University

If you decide to withdraw from Tulane after receiving a federal loan, please contact your Dean's office to discuss the withdrawal process. You should also visit the Tulane Financial Aid Office to discuss how withdrawing will affect your federal loan.

Exit Counseling

Federal regulations require students who have borrowed a Federal Stafford Loan and are graduating, leaving school, or dropping below half-time enrollment to complete an exit counseling session. During this session, borrowers review the terms of the loan, borrower rights and responsibilities, and the consequences of default.

  • When a student Direct Loan borrower graduates or otherwise ceases enrollment, Direct Loan exit counseling is required.
  • Exit counseling may be completed online at www.studentloans.gov. The website forwards exit counseling completions to our office, but you are encouraged to print out and hold onto your confirmation in case there is a problem retrieving that information.
  • Borrowers who do not have internet access may complete exit counseling in person by coming to the Office of Financial Aid on the second floor of the Science and Engineering Lab Complex (Building 14), Room 205. Law and Health Science students may complete this with their respective financial aid offices.

Note: The average federal student loan (Federal Direct and/or Stafford Loans) principal of a borrower who entered Tulane as a first-time full-time freshman and who graduated with a bachelor's degree from Tulane between 7/1/14 and 6/30/15 was $27,849. Forty-two percent of those who entered Tulane as a first-time full-time freshman and who graduated with a bachelor's degree from Tulane between 7/1/14 and 6/30/15 borrowed federal student loan funding.

History of Interest Rates

Please refer to the Federal aid website page on loans for historical information on the interest rates of federal student loans.

Federal Rules and Regulations

Tulane Financial Aid is subject to rules and regulations regarding Federal Student Aid, which may change over time. Information presented here is subject to changes in those rules and regulations as well as additional rules and regulations. Many rules and regulations may be found on https://ifap.ed.gov. A general guide for federal student aid may be found on https://studentaid.gov.

Loan Proration

Loan proration impacts undergraduate students applying for fall graduation who are receiving federal student loans. When a student will complete their degree in the middle of an academic year, federal student aid regulations require that loans be prorated based on the student's enrollment level for the final semester.

Maximum loan amounts by fall credit load for undergraduates in a final fall semester

The actual loan amount may be less if a student has reached annual or lifetime loan limits prior to fall semester.

  Number of Fall Credits
  6 7 8 9 10 11
Dependent Student $1,875 $2,187 $2,499 $2,812 $3,124 $3,436
Independent Student* $3,125 $3,645 $4,166 $4,687 $5,207 $5,728

*and dependent student whose parents were denied a PLUS loan

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