Before completing a federal loan application, you will need to determine whether you are a dependent or an independent student and this will establish which loan types and amounts you are eligible to borrow. Definitions on how to determine this can be found on the Federal Student Aid website, but if your circumstances are unusual and you need advice, please email the US loans team.
Independent
For the purposes of federal aid, a student is considered independent if they meet one or more of the following criteria:
- the student is at least 24 years old by 31 December of the award year;
- the student is an orphan or ward/dependent of the court, or was a ward/dependent of the court until he or she reached age 18;
- the student is a veteran of the US Armed Forces;
- the student is working on a master's or doctorate programme at the beginning of the award year for which the FAFSA is completed;
- the student is married as of the date the FAFSA is completed;
- the student has at least one child who receives more than half of his or her support from the student; and/or
- the student has a dependent, other than a spouse or a child, who lives with the student and receives more than half of his or her support from the student at the time the FAFSA is completed and through 30 June of the award year.
Dependent
The student is considered dependent if they do not meet any of the preceding criteria for an independent student unless the financial aid administrator determines that the student is independent on the basis of special circumstances and performs a dependency override.
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Direct Subsidized Loan and Direct Unsubsidized Loan |
Parent PLUS Loan |
Private loan |
| Who is eligible? |
Most US citizens (or eligible non-citizens) on eligible undergraduate courses.*
Available to dependent and independent students who demonstrate financial need.
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Parents (biological, adoptive, or in some cases, stepparent) of dependent undergraduate students on eligible courses. Both the parent and the student must be eligible for federal student aid. A credit check is required. |
Most US citizens on courses the lender considers eligible. Good credit history is likely to be necessary. A co-signer may be required. |
| How do repayments work? |
No interest or payments as long as you are enrolled on an eligible course at least half-time.
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No payments as long as student is enrolled on an eligible course at least half-time. Interest accrues while studying. |
Variable. You should check the terms and conditions provided to you by your lender. Repayment options tend to be less flexible than federal loans. |
| When do repayments start? |
Usually six months (known as the 'grace period') after your course finishes or you become less than half-time.
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Repayment period begins on the date of the final disbursement. Unless you receive a deferment or forbearance, the first payment will be due within 60 days of the final disbursement date. |
Variable. Repayment options tend to be less flexible than for federal loans. |
| Maximum loan amount per year |
Year 1
Dependent Undergraduate: $5,500 - no more than $3,500 can be Subsidized.
Independent Undergraduate: $9,500 - no more than $3,500 can be Subsidized.
Year 2
Dependent Undergraduate: $6,500 - no more than $4,500 can be Subsidized.
Independent Undergraduate: $10,500 - no more than $4,500 can be Subsidized.
Year 3 and up
Dependent Undergraduate: $7,500 - no more than $5,500 can be Subsidized.
Independent Undergraduate: $12,500 - no more than $5,500 can be Subsidized.
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For dependent undergraduate students only. Total amount remaining after all other funding has been deducted from the COA. |
Total amount remaining after all other aid/loans have been deducted from COA. |
| Aggregate loan limit (how much you can borrow over your lifetime) |
Dependent Undergraduate:
$31,000 - no more than $23,000 Subsidized loans.
Independent Undergraduate:
$57,500 - no more than $23,000 Subsidized loans.
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No limit. |
Depends on lender. |
*Some courses are not eligible for federal loans. Please read our Eligibility guidelines before starting your loan application.
