Syracuse University

Financial Aid Loans

Federal Direct Subsidized Loan

Eligibility for Federal Direct Subsidized and Unsubsidized Loans is determined by information submitted on the Free Application for Federal Student Aid (FAFSA).   Direct Loans are awarded on the basis of financial need and may be Subsidized, Unsubsidized or a combination of the two.  Federal Direct Subsidized Loans are based on need, and no interest is charged while the student is enrolled at least half-time.

Interest Rate:

2013-2014 year:  3.86% fixed
2014-2015 year:  4.66% fixed

The interest subsidy during the six month grace period after a student leaves school has been eliminated by Congress for all Federal Direct subsidized loans that disburse after July 1, 2012, and before July 1, 2014.  Interest will accrue on those loans during grace periods.  Previously interest was not charged during the six month grace period.  Interest will continue to be deferred while a student is enrolled at least half-time and during periods of authorized deferments.  The U.S. government subsidizes the interest during these periods of time. 

NEW:  In an effort to encourage students to obtain undergraduate degrees within a reasonable time frame, Congress enacted legislation which became effective July 1, 2013.  Any new federal subsidized loan borrowers will have a limit on the maximum length of time they are eligible for subsidized loans.  This means students matriculated in a four year program may be eligible for federal subsidized loans for up to six years, if they have not reached their maximum aggregate loan eligibility.  Students who change majors multiple times, or who drop or retake classes excessively, are most likely to be affected. For more information click here.

Loan Fees:
1.072% loans disbursed after December 1, 2013
1.073% loans disbursed after October 1, 2014

Credit Check: No

Eligibility: Must be at least half-time (six or more credits per semester)

Annual Loan Maximum:
Freshman (0-23 credits), $3,500;
Sophomores (24-53 credits), $4,500;
Juniors & Seniors (54-84+ credits), $5,500;

Lifetime Loan Maximum:
Undergraduate students  $23,000;

Repayment Begins: Principal is not due while the student is enrolled at least half-time. Payments begin following a six-month grace period after graduation or if enrollment falls below half-time.

Repayment Terms: 10 years (other repayment plans available based on special circumstances)

Eligible for Federal Loan Deferments, Forbearances, or Loan Forgiveness: Yes

Eligible for Federal Consolidation: Yes

Interest Payments Eligible for Federal Tax Deduction: Yes

To Accept Your Federal Loan

Once students receive their SU Financial Aid Award Notice listing a loan estimate, they must complete the Master Promissory Note (MPN) and Entrance Counseling session to complete the application process for a Direct Loan. Visit your MySlice "Financial Aid To Do List" for instructions.

To Decline Your Federal Loan/Reduce the Loan Amount

To reduce the loan amount or decline the loan completely, students must notify the Office of Financial Aid and Scholarship Programs by completing the Loan Reduction/Cancellation Form.

Educational Loan Calculator

Use the loan calculator to estimate your monthly payments.

Cancel/Reduce Your Current Loan or Federal TEACH Grant

Fill out this form to cancel or reduce your current loan(s) or Federal TEACH grant.