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Federal SUBSIDIZED Direct Loan

This loan is awarded to students who demonstrate financial need. Occidental students may borrow based on their need, year in school, and satisfactory academic progress. When a student is enrolled at least half-time,  no repayment of interest or principal is required. For the 2024-2025 school year, this loan has an interest rate of 6.53%. 

To complete online entrance counseling or to sign a master promissory note for this loan, please visit . 

Federal UNSUBSIDIZED Direct Loan

This loan is available to all students, regardless of their financial need. While the terms of this loan are similar to those noted above,  interest accrual is immediate . Students may choose to pay interest while in school or have it capitalized onto the principal balance until they enter repayment. For the 2024-2025 school year, this loan has an interest rate of 6.53% for undergraduate students (graduate and professional rates are different).

To complete online entrance counseling or to sign a master promissory note for this loan, please visit . 

Additional Direct Loan Facts

Looking for more detailed information about the Federal Direct Loan Program? Here are some basic guidelines.

Fees

The federal government charges an origination fee when the loans are issued. Therefore, a student borrowing $3,500 in the Subsidized Loan will receive less credited to their student account, disbursed in two installments, one in the fall and one in the spring. For loans disbursed between July 1, 2023–September 30, 2024 the origination fee is 1.057%. 

Subsidized vs. Unsubsidized

The main difference between the Subsidized Direct Loan and the Unsubsidized Direct Loan is subsidy.

The federal government pays for the interest on the Subsidized Direct Loan while a student is enrolled at least half-time. Interest on the Unsubsidized Direct Loan accrues from the time the money disburses to the student's account until the time the loan is repaid.

Repayment

Repayment begins six months after graduation, at a minimum of $50 per month. Your actual repayment is determined by the total amount borrowed and interest accrued. In general, there is a maximum of 10 years to repay the loan.

Federal Direct Loan Limits

Annual and grade level limits  in the Federal Direct Loan program (subsidized and unsubsidized) are as follows:

SCHOOL YEAR	MAXIMUM SUBSIDIZED	MAXIMUM UNSUBSIDIZED	MAXIMUM UNSUBSIDIZED (IF NOT ELIGIBLE FOR SUBSIDIZED)
FIRST-YEAR	$3,500	$2,000	$5,500
SECOND-YEAR	$4,500	$2,000	$6,500
THIRD-YEAR	$5,500	$2,000	$7,500
FOURTH-YEAR	$5,500	$2,000	$7,500
FIFTH-YEAR	$5,500	$2,000	$7,500
GRADUATE STUDENT	$8,500	$2,000	$10,500

 

Maximum aggregate borrowing  in the Federal Direct Loan program (subsidized and unsubsidized):

STATUS	AMOUNT
Dependent Undergraduates	$31,000
Dependent Undergraduates whose Parents ineligible for PLUS	$57,500
Independent Undergraduates	$57,500
Graduate Students	$138,500

These loan limits apply to the Direct Loan programs only. A student may borrow more than these amounts in any one year (if eligible) and may accumulate more than the aggregates shown by borrowing in different loan programs.

National Student Loan Data System (NSLDS)

All federal student loan information is sent to the National Student Loan Data System (NSLDS). NSLDS is a national database for loans (and grants) awarded to students under Title IV of the Higher Education Act (HEA) of 1965, as amended. NSLDS provides a convenient, central location for borrowers to track federal student loans from approval to repayment. NSLDS can only be accessed by authorized personnel at É«½ç°É as well as other authorized agencies. To view your federal student loan information from NSLDS, login at .

Understand how interest is calculated and what fees are associated with your federal student loan.

For more information on federal interest rates and fees, visit .