Federal Direct Loan
Federal Direct Loans are low-interest federal educational loans available to college students who are enrolled at least half time, are pursuing a degree, and meet other basic requirements for federal aid.
Subsidized and unsubsidized Direct Loans do not require credit approval and offer a variety of deferment and repayment options.
Direct Loans are financed directly by the US government, so you do not need to choose a lender. All CCA students borrowing a Direct Loan must complete a Master Promissory Note (MPN) and a loan entrance counseling session prior to the disbursement of loan funds. Direct Loans can be subsidized or unsubsidized.
Eligibility for Federal Direct Subsidized Loans* is based on financial need as demonstrated via the FAFSA. Students who do not demonstrate sufficient need may borrow Federal Direct UnsubsidizedLoans.
*Subsidized loans are available to undergraduate students only. Unsubsidized loans are available to both undergraduate and graduate students.
Eligible Annual Direct Loan Amount
Maximum Outstanding Total Subsidized and Unsubsidized Direct Loan Limit
Federal Direct Loan Interest Rates
Eligible Annual Direct Loan Amount
Undergraduate Students
Dependent and Independent Undergraduate Students: may borrow combined subsidized and unsubsidized Direct Loan amounts not to exceed an annual total of:
|
First-Year Students |
$5,500 (a maximum of $3,500 may be subsidized) |
|
Second-Year Students |
$6,500 (a maximum of $4,500 may be subsidized) |
|
Third-, Fourth-, and Fifth-year Students |
$7,500 (a maximum of $5,500 may be subsidized) |
Independent OR Dependent Undergraduate Students whose parents are unable to borrow PLUS Loans (see below): may borrow additional unsubsidized Direct Loan amounts not to exceed an annual total of:
|
First- and Second-Year Students |
$4,000 |
|
Third-, Fourth-, and Fifth-Year Students |
$5,000 |
Graduate or Professional-Degree Students
|
Graduate or Professional-Degree Students |
May borrow up to $20,500 per year through the Direct Loan program. |
Maximum Outstanding Total Subsidized and Unsubsidized Direct Loan Limit
|
Total Subsidized Direct Loan Limit for Undergraduate Students |
$23,000 |
|
Total Combined (Subsidized and Unsubsidized) Loan Limit for Dependent Undergraduate Students |
$31,000 (No more than $23,000 of this aggregate amount may be in the form of subsidized loans) |
|
Total Combined (Subsidized and Unsubsidized) Loan Limit for Independent Undergraduate Students (or dependent undergraduate students whose parents do not qualify for PLUS Loans) |
$57,500 (No more than $23,000 of this aggregate amount may be in the form of subsidized loans) |
|
Graduate or Professional-Degree Students |
$138,500 including loans for undergraduate study (No more than $65,500 of this aggregate amount may be in the form of subsidized loans) |
Federal Direct Loan Interest Rates
The federal government pays the interest on subsidized loans while the borrower is enrolled at least half-time and during authorized periods of deferment. The interest on unsubsidized loans begins to accrue immediately upon disbursement and is generally capitalized (added to the principal amount borrowed) when the borrower is no longer enrolled at least half-time.
- The standard repayment period under this program is 10 years.
|
Fixed Interest Rates for Subsidized and Unsubsidized Direct Loans for undergraduate students disbursed between July 1, 2024, and June 30, 2025 |
6.53% |
|
Fixed Interest Rates for Unsubsidized Direct Loans for graduate students disbursed between July 1, 2024, and June 30, 2025 |
8.08% |
Federal Direct Loan Origination Fees
Most federal student loans have loan origination fees. These fees are a percentage of the total loan amount. A loan origination fee comes out of the amount of money that is disbursed (paid out) to you while you’re in school. This means the money you receive will be less than the amount you actually borrow.
|
Loan Origination Fee for Subsidized and Unsubsidized Direct Loans disbursed between October 1, 2020 - October 1, 2025 |
1.057% |
Applying for Federal Direct Loans
To receive a Federal Direct Loan in the 2023-24 academic year, all new and continuing students who are first-time Federal Direct Loan borrowers at CCA must complete the following:
- 2024–25 FAFSA application
- Loan entrance counseling: Students may contact the Financial Aid Office to request a loan counseling session in person. Only first-time borrowers at CCA need to complete entrance counseling.
- Direct Loan Master Promissory Note (MPN): This MPN can be used for all of your subsidized and unsubsidized Direct Loans while you are enrolled at CCA. You must complete and sign a Direct Loan MPN to receive your loan funds.
You will need your U.S. Department of Education issued Federal PIN to complete an electronic MPN and the loan entrance counseling session -- this is the same PIN used to complete your FAFSA application. For additional information or to ask general PIN questions, visit the official PIN site.
Please review the information in “What You Need” and “What to Expect” sections on the MPN website before completing an electronic MPN. Be sure to choose California College of the Arts (Federal School Code: 001127) as the school association.
If you prefer not to complete the Direct Loan MPN online, please contact us to obtain a paper MPN. Please note by not completing the Direct Loan MPN online, this will delay the processing of your loan(s).