What is the difference between a Direct Subsidized and a Direct Unsubsidized Loan? The federal government pays the interest for Direct Subsidized Loans while the student is in college or while the loan is in deferment. Interest begins accruing for Direct Unsubsidized Loans as soon as the loan is taken out.
How much can I borrow? For subsidized loans, the maximum is $3,500 for freshmen, $4,500 for sophomores and $5,500 for juniors and seniors. Undergraduates who are not eligible for Direct Subsidized Loans may borrow an identical amount in a Direct Unsubsidized Loan. Undergraduates may also borrow an additional $2,000 in a Direct Unsubsidized Loan after they have exhausted their initial subsidized/unsubsidized eligibility. Graduate students may borrow a Direct Unsubsidized Loan for up to $20,500. Undergraduates may not borrow subsidized loans in excess of their financial need (the difference between the cost of attending Drew and our estimate of your contribution to your or your child’s education). No student may borrow unsubsidized loans in excess of his/her cost of attendance.
What are the interest rates?
2019-2020 Direct Loan Interest Rates and Fees (effective July 1, 2019)
| Direct Loan Program | Interest Rate | Fee* |
| Subsidized Federal Direct Loan (for undergraduates only) |
4.53% | 1.059% |
| Unsubsidized Federal Direct Loan (undergraduate students) |
4.53% | 1.059% |
| Unsubsidized Federal Direct Loan (graduate students) |
6.08% | 1.059% |
