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Federal Direct Loans

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UNC Greensboro participates in the Federal Direct Loan program. Eligible students may borrow Federal Direct Loans which are funded by the federal government rather than a private financial institution. 

The benefits of borrowing Federal Direct Loans include: 

General Eligibility for Federal Direct Loans 

Federal Direct Student Loans 

Federal Direct Student Loans are non-credit-based loans for undergraduate and graduate students. Federal Direct Loans typically have lower interest rates than private loans and have many federally guaranteed protections for students that private loans do not have. 

It is the student’s responsibility to keep track of borrowing and make good borrowing decisions. The U.S. Department of Education provides many tools to help students understand borrowing decisions like the Repayment Calculator.  

Federal Direct Student Loans have 6-month grace periods after leaving school or dropping below half-time enrollment before repayment must begin. 

Federal Direct Subsidized Loans 

Subsidized loans are available to only degree-seeking undergraduate students (bachelor’s degree seeking). 

The school calculates the amount you can borrow based on federal borrowing limits and unmet need. 

Students may not exceed cost of attendance when receiving federal, state, or UNCG financial aid. 

The U.S. Department of Education pays the interest on a Direct Subsidized Loan under the following conditions: 

  • While the student is in school at least half-time 
  • During the first 6 months after leaving school or dropping below half-time (grace period) 
  • During a period of deferment in which payments are postponed 

Federal Direct Unsubsidized Loans 

Unsubsidized loans are available to:  

  • Degree-seeking undergraduate students (bachelor’s degree seeking) 
  • Degree-seeking graduate students (master’s or doctoral degree seeking) 

The school calculates the amount you can borrow based on federal borrowing limits and unmet need. 

Students may not exceed cost of attendance when receiving federal, state, or UNCG financial aid. 

The student is responsible for paying the interest on Direct Unsubsidized Loans.  

Apply for Subsidized and/or Unsubsidized Loans 

  1. File the Free Application for Federal Student Aid (FAFSA) for the award year you wish to apply for the loan. Be sure to list UNCG’s school code (002976) when it asks you what school you are planning to attend. 
  2. Once UNCG receives your FAFSA results from the U.S. Department of Education UNCG will automatically offer the maximum amount of Federal Direct Loans based on your eligibility. Awarding for each new award year typically begins in March for the upcoming year that starts in August. 
  3. Accept, reduce, or decline your offered loans on UNCGenie. Typically, students can begin taking action on offered loans beginning in June for the upcoming award year that starts in August. 

The first-time borrowers must complete an online Student Loan Entrance Counseling and a Master Promissory Note with the U.S. Department of Education. The Master Promissory Note is valid for all Direct Subsidized and Unsubsidized Loans for a 10-year period.

Transfer Students 

If you are awarded Federal Direct Loans at your prior institution for the same award year, please be sure you ask your prior institution to cancel those awards before accepting your loans at UNCG. Students may not receive federal aid at two institutions for the same enrollment period. 

Borrowing Limits for Direct Subsidized/Unsubsidized Loans 

Federal law establishes the maximum annual, aggregate, and lifetime limits that students may borrow in federal loans. The annual, aggregate, and lifetimes limits are defined below. 

Effective Fall 2026, Direct Student Loans must be adjusted based on annual enrollment (all Direct Loans except Direct Parent PLUS Loans).  

  • If you are enrolled less than full-time, your Direct Loans must be adjusted proportionately based on your annual enrollment.  
  • If you drop or withdraw from classes after a loan disbursement occurs, it may reduce your eligibility in the next semester if it is within the same award year. 
  • There is no exception and no appeals process for this requirement. 

Maximum annual limits represent the total amount of Direct Loans a student may borrow during a single award year (fall/spring/summer). Students are typically awarded based on maximum loan eligibility and full-time enrollment leading up the semester and the annual limit is divided equally between fall and spring. Maximum full-time limits are noted below based on dependency status and grade levels. 

Other limitations: 

  • Subsidized loans are need-based loans and may be limited based on demonstrated financial need as determined by the cost of attendance, Student Aid Index (SAI), and total other non-loan financial aid and resources. 
  • Students may not exceed their cost of attendance with total aid received.  
  • Students may not exceed their aggregate or lifetime limits. 

Aggregate limits represent the total amount of Direct Loans by type that a borrower is allowed to borrow at a given credential level. The total amounts that students may borrow as undergraduate students differ from the total amounts as a graduate student. With the enactment of the One Big Beautiful Bill Act (OB3) certain continuing borrowers may be subject to the rules that existed prior to July 1, 2026, for a limited period of time. For more information on legacy provision otherwise known as the interim exception, please visit UNCG’s OB3 Financial Aid Changes page. 

Effective fall 2026, under the OB3 Act, borrowers may no longer borrow more than $257,500 in Direct Student Loans during their lifetime (excluding Direct Parent PLUS Loans borrowed for dependent students).

Undergraduate Dependent  Maximum Annual Limits for  
Full-Time Enrollment 		Undergraduate Dependent  
Aggregate Limits 
Freshman Sophomore Junior or Senior 
Max. Subsidized Loan Amount $3,500  $4,500  $5,500  $23,000  
Max. Total Combined Subsidized & Unsubsidized Loan Amount $5,500  $6,500  $7,500  $31,000  

Undergraduate Independent  Maximum Annual Limits for  
Full-Time Enrollment 		Undergraduate Dependent  
Aggregate Limits 
Freshman Sophomore Junior or Senior 
Max. Subsidized Loan Amount $3,500  $4,500  $5,500  $23,000  
Max. Total Combined Subsidized & Unsubsidized Loan Amount $9,500  $10,500  $12,500  $57,500  

Effective Fall 2026: 
New Borrowers & Non-Legacy/Non-Interim Exception 		Effective Fall 2026: 
Continuing Legacy/Interim Exception Borrowers 
Graduate  Maximum Annual Limits for  
Full-Time Enrollment 		Aggregate Limit Graduate  Maximum Annual Limits for  
Full-Time Enrollment 		Aggregate Limit 
Max. Total Unsubsidized Loan Amount $20,500  $100,000  Max. Total Unsubsidized Loan Amount $20,500  $138,500  
(Including Grad Loans Only) (Including Undergrad &  
Grad Loans) 

The One Big Beautiful Bill Act (OB3) established new annual and aggregate Direct Loan limits for Professional Students. Under the regulation published by the U.S. Department of Education’s (ED) definition, none of UNCG’s academic programs fit the definition of a Professional Student for Direct Loan purposes. However, due to ongoing litigation, a U.S. District Court issued a temporary stay on ED’s narrow definition of a Professional Student which temporarily opened the door for two of UNCG’s academic programs to be considered Professional level for Direct Loan purposes (MSAT Athletic Training and Doctor of Nursing Practice). 

UNCG is exercising its authority to limit borrowing for MSAT Athletic Training program to the graduate level limits. 

Non-Legacy Doctor of Nursing Practice (DNP) students may request to increase to their maximum professional level eligibility under the temporary stay. Requesting an increase beyond the graduate level loans introduces significant risk under the temporary stay. To request an increase, DNP students must contact the Office of Financial Aid and Scholarships for the request form. The form includes details about the risks related to the increase that students must understand before requesting the increase.

Effective Fall 2026: 
New Borrowers & Non-Legacy/Non-Interim Exception 		Effective Fall 2026: 
Continuing Legacy/Interim Exception Borrowers 
Professional  
DNP 		 Maximum Annual Limits for  
Full-Time Enrollment 		Aggregate Limit Professional  
DNP 		 Maximum Annual Limits for  
Full-Time Enrollment 		Aggregate Limit 
Max. Total Unsubsidized Loan Amount $50,000  $200,000  Max. Total Unsubsidized Loan Amount $20,500  $138,500  
(Including Grad Loans Only) (Including Undergrad &  
Grad Loans) 

Federal Direct Grad PLUS Loans 

Effective July 1, 2026, under the One Big Beautiful Bill Act (OB3), Direct Grad PLUS Loans are no longer available unless you are subject to the legacy provision otherwise called interim exception. Under the interim exception, continuing graduate students who meet specific criteria may be eligible to borrow Federal Direct Grad PLUS Loans, if approved by the U.S. Department of Education (credit-based loan). 

Legacy provision/interim exception applies to continuing graduate students who: 

Effective Fall 2026, Direct Student Loans must be adjusted based on annual enrollment (all Direct Loans except Direct Parent PLUS Loans).  

  • If you are enrolled less than full-time, your Direct Loans must be adjusted proportionately based on your annual enrollment.  
  • If you drop or withdraw from classes after a loan disbursement occurs, it may reduce your eligibility in the next semester if it is within the same award year. 
  • There is no exception and no appeals process for this requirement. 

Continuing graduate student borrowers subject to the legacy provision/interim exception may apply for the Federal Direct Grad PLUS Loan using the application at the U.S. Department of Education website

  1. File the Free Application for Federal Student Aid (FAFSA) for the award year you wish to apply for the loan. Be sure to list UNCG’s school code (002976) when it asks what school the student is planning to attend.  
  2. The student must accept, reduce, or decline Direct Student Loans on UNCGenie before the Direct Grad PLUS Loan can be fully processed. 
  3. Complete the Federal Direct Grad PLUS Loan application. UNCG opens its new upcoming award year application at the beginning of June each year. Please refer to the information box on how to figure out the loan period to apply for. 
  1. Once the application is complete, the U.S. Department of Education will conduct a credit review to make a decision on the application and will contact the applicant with the results. 
  2. If the Direct Grad PLUS Loan is approved, the first-time borrower must then complete the online Direct Grad PLUS Loan Master Promissory Note (MPN) and Loan Entrance Counseling. 
  3. The U.S. Department of Education will send UNCG the credit decision. Please allow 10 business days for processing.  

Federal Direct Parent PLUS Loans 

A biological, adoptive, or in some cases a step-parent, may apply for a Federal Direct Parent PLUS Loan for undergraduate dependent students.  

The U.S. Department of Education runs a credit check on parent applicants.  

  • If you have a credit freeze in place, you must lift that freeze at each credit bureau before you apply. 
  • Credit check evaluates for adverse credit history. If adverse credit history exists, the parent will have the option to seek an endorser, or the student may be able to take out additional unsubsidized loans in their own name. 

For more information on Direct Parent PLUS Loans, you can review Direct PLUS Loan Basics for Parents. 

Effective July 1, 2026, the One Big Beautiful Bill Act (OB3) enacted new borrowing limits for Federal Direct Parent PLUS Loans. Certain continuing students may be subject to legacy provision/interim exception to continue borrowing under the same rules from before the OB3 was enacted. 

Undergraduate Direct Parent PLUS Loan (eff. July 1, 2026) 
Annual Maximum Aggregate Maximum 
$20,000 per dependent student $65,000 per dependent student 

The school calculates the amount the parent can borrow based on federal borrowing limits and unmet cost. 

Students may not exceed cost of attendance when receiving federal, state, or UNCG financial aid. 

The parent is responsible for paying the interest on Direct Parent PLUS Loans.  

  1. File the Free Application for Federal Student Aid (FAFSA) for the award year you wish to apply for the loan. Be sure to list UNCG’s school code (002976) when it asks what school the student is planning to attend.  
  2. The student must accept, reduce, or decline Direct Student Loans on UNCGenie before the Direct Parent PLUS Loan can be fully processed. 
  3. Complete the Federal Direct Parent PLUS Loan application. UNCG opens its new upcoming award year application at the beginning of June each year. Please refer to the information box on how to figure out the loan period to apply for. 
  1. Once the application is complete, the U.S. Department of Education will conduct a credit review to make a decision on the application and will contact the parent applicant with the results. 
  2. If the Direct Parent PLUS Loan is approved, the first-time parent borrower must then complete the online Direct Parent PLUS Loan Master Promissory Note (MPN). 
  3. The U.S. Department of Education will send UNCG the credit decision. Please allow 10 business days for processing.  

How to View Your Direct Loan History 

Students may view their Federal Direct Loan borrowing history and find contact information for loan services on StudentAid.gov by logging in with their FSA ID and password. 

CONTACT US

Office of Financial Aid and Scholarships