Loan Amounts for Direct Subsidized and Unsubsidized Loans
Annual and Lifetime Loan Maximums
Annual loan amounts may be limited based on other financial aid received and your cost of attendance while enrolled. Your total student aid, including loans, may not exceed your Cost of Attendance, even if you have not reached the annual loan maximum.
The following table outlines maximum annual and career/aggregate loan limits for Direct Subsidized and Unsubsidized Loans.
| Dependent Undergraduate Student | Dependent Undergraduate Student with a Parent PLUS Loan denial* | Independent Undergraduate Student | Graduate and Professional Degree Student | |
|---|---|---|---|---|
|
First-Year (0 – 29 credits) |
$5,500 A maximum of $3,500 may be subsidized |
$9,500 A maximum of $3,500 may be subsidized |
$9,500 A maximum of $3,500 may be subsidized |
$20,500 |
|
Second-Year (29.1 – 59 credits) |
$6,500 A maximum of $4,500 may be subsidized |
$10,500 A maximum of $4,500 may be subsidized |
$10,500 A maximum of $4,500 may be subsidized |
$20,500 |
|
Third-, Fourth-, and Fifth-Years (59.1+ credits) |
$7,500 A maximum of $5,500 may be subsidized |
$12,500 A maximum of $5,500 may be subsidized |
$12,500 A maximum of $5,500 may be subsidized |
$20,500 |
|
Career Maximum Loan Amounts |
$31,000 A maximum of $23,000 may be subsidized |
$57,500 A maximum of $23,000 may be subsidized |
$57,500 A maximum of $23,000 may be subsidized |
$138,500 The graduate debt limit includes Direct Loans received for undergraduate study. |
* If the parent borrower is denied a Direct Parent PLUS loan, the dependent student may be eligible for an additional Direct Unsubsidized Loan. However, if the parent borrower is later approved for the Direct PLUS loan, or another parent borrower is later approved, the dependent student will no longer be eligible for the additional Direct Unsubsidized Loan.
Direct Subsidized and Unsubsidized Direct Loan maximum eligibility for Teacher Certification is $12,500 for the academic year. Due to federal statute, eligibility is based on fifth-year undergraduate loan limits, even though you are required to have a bachelor's degree and your admission is administered by the Penn State Graduate School.
Graduating undergraduate students with a one-semester loan may not be eligible to receive the maximum annual loan limit. Your eligibility will depend on your degree and the number of credits for which you are enrolled. Federal regulations require that the Direct Loan amount be prorated for a student who is enrolled for only one semester in an academic year, and will be graduating during that semester.
Time Limits for Loans - Repealed
Since 2013, Direct Loan statutory requirements have limited a first-time borrower’s eligibility for Direct Subsidized Loans to a period not to exceed 150% of the length of the borrower’s educational program. In addition, under certain conditions, the requirements have caused first-time borrowers who have met or exceeded the 150% limit to lose the interest subsidy on their Direct Subsidized Loans. The FAFSA Simplification Act, part of the Consolidated Appropriations Act, 2021 (Public Law 116-260) provides for a repeal of the 150% Subsidized Usage Limit Applies (SULA) requirements.
Federal loan servicers will retroactively apply subsidy benefits to any period of time, such as an in-school deferment, during which a borrower would have been entitled to subsidy benefits. This may include removing accrued interest and reapplying payments, where appropriate.
Contact your Federal Loan Servicer with questions regarding your subsidized loan eligibility.
Federal Direct Loans In Excess of Established Limits
If you have lost ability for federal student financial aid because you inadvertently received a Direct Loan or FFEL program loan that caused you to exceed the annual or aggregate loan limit, there are two options to regain your eligibility (however, if you are at or exceeding your aggregate loan limit, you will not be eligible for further Federal Direct loans, unless your limits increase, such as moving from an undergraduate to a graduate-level degree. To get complete information about your loan(s) or contact information regarding your loan holder(s), you may log into studentaid.gov.
To regain eligibility for federal student financial aid, you may either:
- Repay the excess loan amount directly to your loan servicer.
- Agree to repay the excess according to the terms and conditions of your promissory note ("reaffirmation"), in which case you will begin the process by downloading the Reaffirmation Agreement Form.
Direct Subsidized/Unsubsidized Loan Proration
Federal regulations require schools to prorate the Direct Loan amounts for graduating undergraduate students when their final period of enrollment is less than a full academic year (fall-only, spring-only, or summer-only). The loan limit proration determines the maximum loan amount that a student may borrow for the final term of study based on the degree they are earning.
Graduating undergraduate students who are only attending one semester of the academic year will have their Direct Loans prorated based on the number of credit hours they are enrolled.
Note: Graduate and professional students are excluded from the loan proration requirement
Bachelor's Degree
|
Credits |
Subsidized* |
Unsubsidized |
Total Dependent Student |
Parent PLUS Denial or Independent Student Additional Unsubsidized |
Total with Plus Denial or Independent Student |
| 6 | $1,375 | $500 | $1,875 | $1,250 | $3,125 |
| 7 | $1,604 | $583 | $2,187 | $1,458 | $3,645 |
| 8 | $1,833 | $667 | $2,500 | $1,666 | $4,166 |
| 9 | $2,062 | $750 | $2,812 | $1,875 | $4,687 |
| 10 | $2,292 | $833 | $3,125 | $2,083 | $5,208 |
| 11 | $2,521 | $916 | $3,437 | $2,292 | $5,729 |
| 12 | $2,750 | $1,000 | $3,750 | $2,500 | $6,250 |
| 13 | $2,979 | $1,083 | $4,062 | $2,708 | $6,770 |
| 14 | $3,208 | $1,167 | $4,375 | $2,916 | $7,291 |
| 15 | $3,437 | $1,250 | $4,687 | $3,125 | $7,812 |
| 16 | $3,667 | $1,333 | $5,000 | $3,333 | $8,333 |
| 17 | $3,896 | $1,416 | $5,312 | $3,542 | $8,854 |
| 18 | $4,125 | $1,500 | $5,625 | $3,750 | $9,375 |
| 19 | $4,354 | $1,583 | $5,937 | $3,958 | $9,895 |
| 20 | $4,583 | $1,667 | $6,250 | $4,166 | $10,416 |
| 21 | $4,812 | $1,750 | $6,562 | $4,375 | $10,937 |
| 22 | $5,042 | $1,833 | $6,875 | $4,583 | $11,458 |
| 23 | $5,271 | $1,916 | $7,187 | $4,792 | $11,979 |
| 24 | $5,500 | $2,000 | $7,500 | $5,000 | $12,500 |
*Subsidized loan amounts are subject to need analysis
Associate's Degree
|
Credits |
Subsidized* |
Unsubsidized |
Total Dependent Student |
Parent PLUS Denial or Independent Student Additional Unsubsidized |
Total with Plus Denial or Independent Student |
| 6 | $1,125 | $500 | $1,625 | $1,000 | $2,625 |
| 7 | $1,312 | $583 | $1,895 | $1,167 | $3,062 |
| 8 | $1,500 | $667 | $2,167 | $1,333 | $3,500 |
| 9 | $1,687 | $750 | $2,437 | $1,500 | $3,937 |
| 10 | $1,875 | $833 | $2,708 | $1,667 | $4,375 |
| 11 | $2,062 | $917 | $2,979 | $1,833 | $4,812 |
| 12 | $2,250 | $1,000 | $3,250 | $2,000 | $5,250 |
| 13 | $2,437 | $1,083 | $3,520 | $2,167 | $5,687 |
| 14 | $2,625 | $1,166 | $3,791 | $2,334 | $6,125 |
| 15 | $2,812 | $1,250 | $4,062 | $2,500 | $6,562 |
| 16 | $3,000 | $1,333 | $4,333 | $2,667 | $7,000 |
| 17 | $3,187 | $1,417 | $4,604 | $2,833 | $7,437 |
| 18 | $3,375 | $1,500 | $4,875 | $3,000 | $7,875 |
| 19 | $3,562 | $1,583 | $5,145 | $3,167 | $8,312 |
| 20 | $3,750 | $1,666 | $5,416 | $3,334 | $8,750 |
| 21 | $3,937 | $1,750 | $5,687 | $3,500 | $9,187 |
| 22 | $4,125 | $1,833 | $5,958 | $3,667 | $9,625 |
| 23 | $4,312 | $1,917 | $6,229 | $3,833 | $10,062 |
| 24 | $4,500 | $2,000 | $6,500 | $4,000 | $10,50 |
*Subsidized loan amounts are subject to need analysis