Federal Loans: Direct Loan Program
​​​​​​​​​​​AUB participates in the Federal Loan under William D. Ford Federal Direct Loan Program, where the U.S. Department of Education's Direct Loan Servicing Center provides the funds.

Direct Loans are student loans that must ​be repaid. They are available to both AUB undergraduate and graduate students except for students seeking a Medical Doctor degree (MD) and Nursing students (there are special laws that govern federal financial aid for students seeking a Medical Doctor degree (MD) and Nursing schools located outside the United States).

First-year undergraduates (Freshmen) are eligible for loans up to $3,500 in subsidized Direct Loan, of which a processing fee is subtracted from the proceeds by the lender. Loan amounts that could be borrowed 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.​

​​​

Year​​

Dependent Students (except students whose parents are unable to obtain PLUS ​​Loans)

​Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans)

​​First-Year Undergraduate
​$5,500 — No more than $3,500 of this amount may be in subsidized loans
​$9,500 — No more than $3,500 of this amount may be in subsidized loans
​Second-Year Undergraduate​
​$6,500 — No more than $4,500 of this amount may be in subsidized loans
$10,500 — No more than $4,500 of this amount may be in subsidized loans
​Third-Year & Beyond Undergraduate​
​$7,500 per year — No more than $5,500 of this amount may be in subsidized loans
​$12,500 per year — No more than $5,500 of this amount may be in subsidized loans
Graduate or Professional Degree
Not Applicable
$20,500 unsubsidized loan amount
​Maximum Total Debt from Subsidized and Unsubsidized Loans
​$31,000 — No more than $23,000 of this amount may be in subsidized loans
​$57,500 for undergraduates — No more than $23,000 of this amount may be in subsidized loans

​$138,500 for graduate or professional students — No more than $65,500 of this amount may be in subsidized loans. The graduate debt limit includes all federal loans received for undergraduate study

  
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. 
 

 What is a Subsidized / Unsubsidized Direct 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
  • During any deferment periods​

However, interest is charged on you during the repayment period.

For unsubsidized Direct loan, you are responsible for paying all of the interest during the life of the unsubsidized loan, and you may choose not to pay the interest while you are 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​


​​What are the interest rate on these loans?​

​​D​irect​ Loans First Disbursed between July 1, 2018, and July 1, 2019​

​​Direct Subsidi​zed Loans (Undergraduate Students)
5.05%

​            Direct Unsubsidized Loans (Undergraduate Students)​​​​​

5.05​​%

​           Direct Unsubsidized Loans (Graduate or Professional Students)​

​​6.6​​%

​​Direct PLUS Loans (Parents and Graduate or Professional Students)​

7.6%
You can check the here interest rates on federal student loans first disbursed before July 1, 2017​.​ 

* Note: The interest rates for federal student loans are determined by ​federal law.​​

 ​​

 What are the fees on these loans?​

​​​D​irec​t Loans First Disbursed between Octobe​r 1, 2018, and​ ​October​ 1​​, 2019​​​

​Direct Subsidized & Unsubsidized Loans​

​1.062%​

​Direct PLUS Loans (Parents and Graduate or Professional Students)​

​4.248%