Subsidized and Unsubsidized Federal Direct Loans are for eligible students to help cover the cost of higher education. Federal student loans are funded by the federal government.

How do I apply for a Federal Direct Loan?

  • Complete the Free Application for .
  • Complete Entrance Loan Counseling  - Federal regulations require that ALL first-time ÈâÈ⴫ý Federal Direct Stafford Loan borrowers complete Stafford Entrance Loan Counseling before being awarded a Federal Direct Stafford Loan. is completed through your Federal Student Aid account. An electronic confirmation will transmitted to the Financial Aid Office within 24 hours.
  • Complete your Master Promissory Note. This will only need to be completed once while you attend ÈâÈ⴫ý. Your  is completed through your Federal Student Aid account.

Dependent vs. Independent definition

Your dependency status affects what information you'll include on the FAFSA and your loan limits. If you're a dependent student, you have to report information from both you and your parents. If you're an independent student, you only have to report your own information (and your spouse's, if you're married). The  website provides a break down to help you determine if you are a dependent or independent student.

Maximum annual Federal Direct Loan limits for students

Academic Level Annual LimitSubsidized &Unsubsidized Annual LimitAdditionalUnsubsidized TotalAnnualLimit
Freshman
(≤ 29 credit hours earned)		 $3,500 $2,000 $5,500
Sophomore
(≤ 59 credits earned)		 $4,500 $2,000 $6,500
Junior
(accepted to a Bachelor’s
program, 60+ credits)		 $ 5,500 $2,000 $7,500
Senior
(accepted to a Bachelor’s
program, 90+ credits)		 $ 5,500 $2,000 $7,500

Note: Additional Unsubsidized Loan funds of up to $4000 per year, (not included in chart) may be available for students whose parents are denied a Parent Loan for Undergraduate Students (PLUS).
Freshman
(≤ 29 credit hours earned)		 $3,500 $ 6,000 $ 9,500
Sophomore
(≤ 59 credits earned)		 $4,500 $ 6,000 $ 10,500
Junior
(accepted to a Bachelor’s
program, 60+ credits)		 $5,500 $ 7,000 $ 12,500
Senior
(accepted to a Bachelor’s
program, 90+ credits)		 $5,500 $ 7,000 $ 12,500

Loan Proration for Graduating Borrowers

Per federal regulation KSU is required to prorate a dependent or independent undergraduate student's annual Stafford loan limits, when they are enrolled in one semester and will graduate in the same academic year. This mostly will affect students that will graduate from their program of study at the end of the fall term.

Loan Proration Formula

  • Number of credit hours student enrolled for undergraduate / *Number of credit hours in an academic year (24) X annual Stafford loan limit

*The number of credit hours in an academic year is 24 credit hours.

Examples for Students Enrolled Full-Time (1 Semester)

Example of Dependent Student Proration Calculation

  • 12 credits enrolled / 24 X 5500 subsidized loan = $2750
  • 12 credits enrolled / 24 X 2000 unsubsidized loan = $1000 

Example of Independent Student Proration Calculation

  • 12 credits enrolled / 24 X 5500 subsidized loan = $2750
  • 12 credits enrolled / 24 X 7000 unsubsidized loan = $3500

Examples for Students Enrolled Three-Quarter Time (1 Semester)

Example ff Dependent Student Proration Calculation

  • 9 credits enrolled / 24 X 5500 subsidized loan = $2062
  • 9 credits enrolled / 24 X 2000 unsubsidized loan = $750

Example of Independent Student Proration Calculation

  • 9 credits enrolled / 24 X 5500 subsidized loan = $2062
  • 9 credits enrolled / 24 X 7000 unsubsidized loan = $2625

Examples for Students Enrolled Half-Time (1 Semester)

Example of Dependent Student Proration Calculation

  • 6 credits enrolled / 24 X 5500 subsidized loan = $1375
  • 6 credits enrolled / 24 X 2000 unsubsidized loan = $500

Example of Independent Student Proration Calculation

  • 6 credits enrolled / 24 X 5500 subsidized loan = $1375
  • 6 credits enrolled / 24 X 7000 unsubsidized loan = $1750

For more information please visit the .