The Federal Direct Unsubsidized loan is the most widely used loan for graduate students. Most all students, for whom we receive a valid Free Application for Federal Student Aid (FAFSA), will have this loan included in their financial aid offer.
Eligibility:
The Federal Direct Unsubsidized Loan is available to students for whom we've received a valid FAFSA, enrolled in a degree seeking program in a minimum of 4 credit hours, and are otherwise eligible to receive federal student loans.
Maximum Loan Limits
Legacy borrowers—those who have borrowed a Direct loan at DU prior to July 1, 2026 for a program for which they are currently enrolled— will be offered loans according to the maximum loan amount detailed below:
- Annual loan amount of up to $20,500 per academic year. (Students in the Doctor of Psychology program and Clinical Psychology program are eligible for up to $33,000 per academic year, with an additional $4,167 if enrolled in summer courses.
- Aggregate loan amount may not exceed $138,500 (including undergraduate loan debt).
The limits above also apply to the legacy borrowers enrolled in a professional program.
Professional programs offered by DU include:
- Law (JD),
- Clinical Psychology (PhD)
- Psychology (PhD)
Borrowers who lose legacy loan status will no longer be eligible for the Graduate PLUS loan option and will be subject to the new borrower loan maximum amounts, including the lifetime maximum loan limit described below.
New borrowers—those who have not borrowed Direct loans for their current program/ or primary program (if dually enrolled) of study at DU prior to July 1, 2026— will be offered loans according to the following maximum loan amounts:
- Annual amount of up to $20,500 per academic year.
- Aggregate loan amount may not exceed $100,000 (excluding undergraduate debt).
New borrowers, as previously described, that are enrolled in a professional program will be offered loans according to the following maximum loan amount:
- Annual loan amount of up to $50,000 per academic year.
- Aggregate loan amount may not exceed $200,000 (excluding undergraduate loan debt)
- Lifetime maximum loan limit may not exceed $257,500 (includes all federal student loan debt)
The lifetime maximum includes federal student loans borrowed for any grade level regardless of whether the loan was paid, cancelled, or discharged.
New borrowers enrolled in a professional program may not exceed the aggregate loan limit of $200,000 (excluding undergraduate loan debt).
>>Learn more about Direct Loan limits
Schedule of Reduction (SOR)
Beginning with the 2026-27 academic year, students must be enrolled full time (a minimum of 8 credits (12 credits for law students)) each term to be eligible for their maximum loan amount. Students enrolled less than full time will see their unsubsidized loan and/or GPLUS loan reduced so that the amount is commensurate with their actual enrollment each term using the following formula:
( number of credit hours enrolled for the academic year
_________________________________________________________________________ x 100
number of credit hours considered full time for the academic year )
For the purpose of calculating SOR, 24 credit hours will be used to represent full-time enrollment for graduate students. Although a student may be enrolled in more than 8 (12 for law) credits hours in any given term, no more than one-third (one-half for law students) of the maximum total loan eligibility may be disbursed.
Example:
A graduate student is eligible for up to $20,500. The student is enrolled in 8 credit hours in the fall, 4 in winter, and 4 in spring.
Full-time enrollment for the academic year is 24 credits. The student is enrolled in 16 credits, or at 67% of full time eligibility, and is eligible to receive 67% of their fall disbursement based on their maximum loan eligibility.
Schedule of Reduction Applied
Enrollment will be evaluated at the time of disbursement and again at the census date (end of the 100% add/drop). Students enrolled less than full time will see their loan adjustment applied to the following term. In the example above, because the student was enrolled less than full time in winter term, the spring term disbursement of the unsubsidized loan and/or GPLUS loan will disburse at 67%.
Direct Loan Interest Rates and Fees
- For graduate loans borrowed during the 2026-27 academic year: 8.07%
- For graduate loans borrowed during the 2025-26 academic year: 7.94%
These interest rates are fixed for the life of the loan and begin accruing when the loan is first disbursed. Interest continues to accrue throughout the life of the loan. You have the option to pay the interest directly to your servicer as it accrues. If not paid, interest will be capitalized when repayment begins.
Origination Fee: A loan origination fee is proportionately deducted at the disbursement of each installment of the loan. For loans first disbursed on or after Oct. 1, 2020, and before Oct. 1, 2026, the fee is 1.057%.
Requirements for Disbursement
You must complete both a Master Promissory Note and Entrance Counseling online at StudentAid.gov, and remain enrolled in a minimum of 4 credits or more, to receive funds.
Direct Loan Repayment
No payments are required while you're in school, and repayment begins six months after you graduate or cease to be enrolled in at least 4 credit hours. Payments are made to your Direct Loan servicer each month. Your monthly payment amount will depend on your total borrowing and chosen repayment plan.
The standard repayment period is 10 years but can be as long as 25 years depending on total borrowing and chosen repayment plan. These loans can also be consolidated with other federal loans.
>>Learn More about Direct Loan repayment
