Direct Loan are student loans that must be repaid.  They are available to both AUB undergraduate and graduate students except for medical students (there are special laws that govern federal financial aid for students enrolled in medical medical schools located outside the U.S.). 

AUB participates in the Federal loan under Direct Loan program, where the U.S. Department of Education's Direct Loan Servicing Center provides the funds.

First-year undergraduates (Freshmen) are eligible for loans up to $3,500, of which a processing fee is subtracted from the proceeds by the lender.  Amounts increase for subsequent years of study, with the highest amounts going for graduate students.  The interest rate is usually variable, but it never exceeds 8.25 percent.  The table below shows the maximum amounts that students may receive for each year of study.

* This is optional, the student has to ask for the unsubsidized amount and should be aware that the interest will be charged on the student as soon as the amount is disbursed.

What is a subsidized/unsubsidized loan?

For a subsidized Direct Loan, the U.S. Department of Education pays the interest on your loan while you are still at the University, during grace periods, and during any deferment periods while the interest is charged on you during the repayment period.  For unsubsidized loans, you are responsible for paying all of the interest during the life of the unsubsidized loan, however, you may choose not to pay the interest while at the university and the accumulated amount will then be added to the principal loan amount when the repayment period starts.

For more specific information about federal student aid, you can explore the U.S. Department of Education's web site at www.studentaid.ed.gov

Maximum annual loan limits chart (aggregate loan limits)—Subsidized and unsubsidized Direct loans

NOTE: The amounts shown in the chart above are the maximum amounts that you may borrow for an academic year.* You might receive less than the maximum if you receive other financial aid that’s used to cover a portion of your cost of attendance.* The maximum amount you may borrow will also be less in certain situations, such as if you are an undergraduate student enrolled in a program of study that is shorter than an academic year.* Graduate and professional students enrolled in certain health profession programs may receive additional unsubsidized Direct Loan amounts beyond those shown above.

Your school can refuse to certify your loan or can certify a loan for an amount less than you would otherwise be eligible for if the school documents the reason for its action and explains the reason to you in writing. The school’s decision is final and cannot be appealed to the U.S. Department of Education.