Federal Student loans are offered by the U.S. Department of Education to help eligible students cover the cost of higher education at an accredited institution.
To apply for a Direct Loan, you must first complete and submit the Free Application for Federal Student Aid (FAFSA®) form. RPI will use the information from your FAFSA form to determine how much student aid you are eligible to receive. Direct Loans are generally included as part of your financial aid package.
Detailed procedures to apply for Direct Loans can be found here.
Options for Undergraduate Students
Subsidized Loans
- Subsidized: Federal government covers interest while enrolled at least half-time and for six months after.
- Eligibility: Based on financial need; only available to undergraduate students.
- Origination Fee: Department of Education may deduct 1.057% of borrowed amount.
- Interest Rate: Fixed rate of high yield Treasury Note as of June 1 + 2.05%; 2025-2026 rate is 6.39%.
- Repayment Start: Six months after graduation, enrolling in fewer than six credits, or leaving school.
- Interest-Free Repayment Option: Pay full principal before grace period ends to avoid interest.
- Monthly Payment: Varies with total borrowed amount.
- Repayment Term: Standard term is 10 years.
Unsubsidized Loans
- Unsubsidized: Federal government does not cover interest; interest accrues from disbursement.
- Interest Accrual: Begins while in school; can opt to make interest payments during this time.
- Interest Capitalization: Unpaid interest added to principal if not paid during school.
- Interest Rate, Origination Fee, and Repayment Term: Same as Subsidized Loan program.
Learn more about the difference between subsidized and unsubsidized loans
Annual Loan Limits for Undergraduate Students
| Academic Level | Dependent Student Annual Limit | Independent Student (or Dependent Student whose Parent was Denied a PLUS Loan) Annual Limit |
|---|---|---|
| First-Year Undergraduate* | $5,500 (up to $3,500 subsidized) | $9,500 (up to $3,500 subsidized) |
| Second-Year Undergraduate* | $6,500 (up to $4,500 subsidized) | $10,500 (up to $4,500 subsidized) |
| Third-Year and Beyond* | $7,500 (up to $5,500 subsidized) | $12,500 (up to $5,500 subsidized) |
*Class standing is determined by institutional policy and may vary by major based on earned credits.
Aggregate (Lifetime) Direct Loan Limits
| Student Status | Total Aggregate Limit | Maximum Subsidized Portion |
|---|---|---|
| Dependent Undergraduate | $31,000 | $23,000 |
| Independent Undergraduate (or Dependent Student whose Parent was Denied a PLUS Loan) | $57,500 | $23,000 |
Notes:
- Annual loan limits include both Direct Subsidized and Direct Unsubsidized Loans.
- Students must meet all federal eligibility requirements to receive Direct Loans.
- The amount of Direct Subsidized Loan a student may receive cannot exceed the annual subsidized limit shown above.
- The Office of Financial Aid may award less than the annual maximum based on a student's financial need, cost of attendance, other financial aid received, and remaining eligibility.
Options for Graduate Students
Unsubsidized Loans
- Unsubsidized: Federal government does not cover interest; interest accrues from disbursement.
- Interest Accrual: Begins while in school; can opt to make interest payments during this time.
- Interest Capitalization: Unpaid interest added to principal if not paid during school.
- Interest Rate, Origination Fee, and Repayment Term: Same as Subsidized Loan program.
Annual Loan Limits for Graduate Students
| Student Status | Annual Direct Unsubsidized Loan Limit |
|---|---|
| Graduate Student | $20,500 |
Aggregate (Lifetime) Direct Loan Limits
| Student Status | Total Aggregate Limit | Includes Undergraduate Borrowing |
|---|---|---|
| Graduate Student | $100,000 | Yes (includes all federal Direct and FFEL loans received as an undergraduate) |
Notes:
- Graduate students are eligible only for Federal Direct Unsubsidized Loans.
- The annual borrowing limit is $20,500.
- The aggregate loan limit of $138,500 includes any federal Direct or FFEL loans borrowed as an undergraduate. No more than $65,500 of this aggregate amount may consist of subsidized loans, which are only available from undergraduate study.
- The Office of Financial Aid may award less than the annual maximum based on the student's cost of attendance, other financial aid received, and remaining federal loan eligibility.
Direct Loan Schedule of Reductions (SOR) for Part-Time Study
Under the One Big Beautiful Bill Act (OBBBA/OB3), for Direct Loans packaged and originated for the 2026-27 academic year (AY), a student’s annual loan limit must be adjusted for less than full time enrollment (known as the Schedule of Reductions, or SOR). This requirement applies to all undergraduate, graduate, and professional student Direct Loan borrowers for Direct Subsidized Loans, Direct Unsubsidized Loans, and graduate PLUS Loans for legacy borrowers. Parent PLUS Loans are not subject to these adjustments.
Details on RPI's SOR policy can be found here.
