STUDENT FINANCIAL SERVICES
Federal Student Aid Changes (OBBBA)
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduces significant changes to federal student financial aid programs. Colleges and universities across the country are actively updating guidance as federal agencies release additional details. See Details.
The chart below shows the interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2025, and before July 1, 2026.
| Loan Type | Borrower Type | Fixed Interest Rate |
| Direct Subsidized Loans | Undergraduate Students | 6.39% |
| Direct Unsubsidized Loans | Undergraduate Students | 6.39% |
| Direct Unsubsidized Loans | Graduate/Professional Students | 7.94% |
| Direct PLUS Loans | Parents of Dependent Undergraduate Students and Graduate/Professional Students | 8.94% |
The chart below shows the interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2024, and before July 1, 2025.
| Loan Type | Borrower Type | Fixed Interest Rate |
| Direct Subsidized Loans | Undergraduate Students | 6.53% |
| Direct Unsubsidized Loans | Undergraduate Students | 6.53% |
| Direct Unsubsidized Loans | Graduate/Professional Students | 8.08% |
| Direct PLUS Loans | Parents of Dependent Undergraduate Students and Graduate/Professional Students | 9.08% |
The Department of Education has released information indicating the Direct Loan student origination fee will remain the same for any loans first disbursed after October 1, 2020. The loan fee for Direct Subsidized Loans and for Direct Unsubsidized Loans will remain at 1.057%. The fee on a loan for $5,500 will be $58.13 (truncated to nearest cent, not rounded). The loan fee for Direct PLUS Loans (for both parent borrowers and graduate and professional student borrowers) is 4.228%. The fee on a $10,000 Direct PLUS loan would be $422.80 (truncated to nearest cent, not rounded).
The following chart shows the sequester-required loan fees for loans first disbursed through 10/1/2025.
| Loan Type | First Disbursed | Loan Fee Percent | Fee Example |
| Direct Subsidized Loans and Direct Unsubsidized Loans | On or after October 1, 2020, and before October 1, 2025 | 1.057 | $58.13 on a $5,500 loan |
| Direct PLUS Loans (Parent and Grad/Prof Student) | On or after October 1, 2020, and before October 1, 2025 | 4.228 | $422.80 on a $10,000 loan |
| Loan fee calculations that result in more than two decimal places must be truncated to two digits after the decimal point (cents). | |||
A TEACH Grant where the first disbursement is on or after October 1, 2022, and before October 1, 2024, requires a reduction of 5.7% from the award amount for which the student would otherwise have been eligible.
The following chart shows the FY 24 sequester-required TEACH Grant Program reductions as they apply to the 2023-2024 award year.
| TEACH Grant Awards | |||||
|---|---|---|---|---|---|
| Award Year | Impacted Awards | Statutory Maximum Scheduled Award Amount | Percentage Reduction from Statutory Award Amount | Dollar Reduction Amount from Maximum Award Amount | Adjusted Maximum Award Amount |
| 2023-2024 | First disbursed on or after October 1, 2022, and before October 1, 2024 (FY 22 Sequester) | $4,000 | 5.70% | $228.00 | $3,772.00 |
The chart below shows the interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2023, and before July 1, 2024.
| Loan Type | Borrower Type | Fixed Interest Rate |
| Direct Subsidized Loans | Undergraduate Students | 5.50% |
| Direct Unsubsidized Loans | Undergraduate Students | 5.50% |
| Direct Unsubsidized Loans | Graduate/Professional Students | 7.05% |
| Direct PLUS Loans | Parents of Dependent Undergraduate Students and Graduate/Professional Students | 8.05% |
The chart below shows the interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2022, and before July 1, 2023.
| Loan Type | Borrower Type | Fixed Interest Rate |
| Direct Subsidized Loans | Undergraduate Students | 4.99% |
| Direct Unsubsidized Loans | Undergraduate Students | 4.99% |
| Direct Unsubsidized Loans | Graduate/Professional Students | 6.54% |
| Direct PLUS Loans | Parents of Dependent Undergraduate Students and Graduate/Professional Students | 7.54% |
Note: In response to the COVID-19 emergency relief period, the interest rate on all Direct Loans has been temporarily set at 0% until at least August 31, 2022. Once the COVID-19 emergency relief period ends, the rates as described in this announcement will be in effect for loans first disbursed on or after July 1, 2022.
The Department of Education has released information indicating the Direct Loan student origination fee will remain the same for loans first disbursed after October 1, 2022. The loan fee for Direct Subsidized Loans and for Direct Unsubsidized Loans will remain at 1.057%. The fee on a loan for $5,500 will be $58.13 (truncated to nearest cent, not rounded). The loan fee for Direct PLUS Loans (for both parent borrowers and graduate and professional student borrowers) is 4.228%. The fee on a $10,000 Direct PLUS loan would be $422.80 (truncated to nearest cent, not rounded).
The following chart shows the sequester-required loan fees for loans first disbursed through 10/1/2024.
| Loan Type | First Disbursed | Loan Fee Percent | Fee Example |
|---|---|---|---|
| Direct Subsidized Loans and Direct Unsubsidized Loans | On or after October 1, 2020, and before October 1, 2024 | 1.057 | $58.13 on a $5,500 loan |
| Direct PLUS Loans (Parent and Grad/Prof Student) | On or after October 1, 2020, and before October 1, 2024 | 4.228 | $422.80 on a $10,000 loan |
| Loan fee calculations that result in more than two decimal places must be truncated to two digits after the decimal point (cents). | |||
A TEACH Grant where the first disbursement is on or after October 1, 2022, and before October 1, 2023, requires a reduction of 5.7% from the award amount for which the student would otherwise have been eligible.
The following chart shows the FY 23 sequester-required TEACH Grant Program reductions as they apply to the 2022-2023 award year.
| TEACH Grant Awards | |||||
|---|---|---|---|---|---|
| Award Year | Impacted Awards | Statutory Maximum Scheduled Award Amount | Percentage Reduction from Statutory Award Amount | Dollar Reduction Amount from Maximum Award Amount | Adjusted Maximum Award Amount |
| 2022-2023 | First disbursed on or after October 1, 2021, and before October 1, 2022 (FY 22 Sequester) | $4,000 | 5.70% | $228.00 | $3,772.00 |
| First disbursed on or after October 1, 2022, and before October 1, 2023 (FY 23 Sequester) | $4,000 | 5.70% | $228.00 | $3,772.00 | |
The Department of Education recognizes the need to continue to provide relief to millions of students and colleges facing challenges and barriers resulting from the ongoing national emergency. This means verification is being waived for most Free Application for Federal Student Aid/Institutional Student Information Record (FAFSA®/ISIR) information, except for Identity/Statement of Educational Purpose. This waiver begins May 18, 2022, and applies for the remainder of the 2022-2023 FAFSA processing and verification cycle. The University may still reach out to resolve conflicting information concerning a student’s eligibility.
The Department of Education has released information indicating the Direct Loan student origination fee will remain the same for loans first disbursed after October 1, 2021. The loan fee for Direct Subsidized Loans and for Direct Unsubsidized Loans will be 1.057%. The fee on a loan for $5,500 will be $58.13 (truncated to nearest cent, not rounded). The loan fee for Direct PLUS Loans (for both parent borrowers and graduate and professional student borrowers) is 4.228%. The fee on a $10,000 Direct PLUS loan would be $422.80 (truncated to nearest cent, not rounded).
The following chart shows the sequester-required loan fees for FY 2021 and FY 2022.
| Direct Loan Fees for FY 20 and FY 21 | |||
|---|---|---|---|
| Loan Type | First Disbursed | Loan Fee Percent | Fee Example |
| Direct Subsidized Loans and Direct Unsubsidized Loans | FY 21 On or after October 1, 2020, and before October 1, 2021 | 1.057 | $58.13 on a $5,500 loan |
| FY 22 On or after October 1, 2021, and before October 1, 2022 | 1.057 | $58.13 on a $5,500 loan | |
| Direct PLUS Loans (Parent and Grad/Prof Student) | FY 21 On or after October 1, 2020, and before October 1, 2021 | 4.228 | $422.80 on a $10,000 loan |
| FY 22 On or after October 1, 2021, and before October 1, 2022 | 4.228 | $422.80 on a $10,000 loan | |
| Loan fee calculations that result in more than two decimal places must be truncated to two digits after the decimal point (cents). | |||
A TEACH Grant where the first disbursement is on or after October 1, 2021, and before October 1, 2022, requires a reduction of 5.7% from the award amount for which the student would otherwise have been eligible.
The following chart shows the FY 22 sequester-required TEACH Grant Program reductions as they apply to the 2021-2022 award year.
| TEACH Grant Awards | |||||
|---|---|---|---|---|---|
| Award Year | Impacted Awards | Statutory Maximum Scheduled Award Amount | Percentage Reduction from Statutory Award Amount | Dollar Reduction Amount from Maximum Award Amount | Adjusted Maximum Award Amount |
| 2021-2022 | First disbursed on or after October 1, 2020, and before October 1, 2021 (FY 21 Sequester) | $4,000 | 5.70% | $228.00 | $3,772.00 |
| First disbursed on or after October 1, 2021, and before October 1, 2022 (FY 22 Sequester) | $4,000 | 5.70% | $228.00 | $3,772.00 | |
The chart below shows the interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2021, and before July 1, 2022.
| Loan Type | Borrower Type | Fixed Interest Rate |
|---|---|---|
| Direct Subsidized Loans | Undergraduate Students | 3.73% |
| Direct Unsubsidized Loans | Undergraduate Students | 3.73% |
| Direct Unsubsidized Loans | Graduate/Professional Students | 5.28% |
| Direct PLUS Loans | Parents of Dependent Undergraduate Students and Graduate/Professional Students | 6.28% |
Note: In response to the COVID-19 emergency relief period, the interest rate on all Direct Loans has been temporarily set at 0% until at least September 30, 2021. Once the COVID-19 emergency relief period ends, the rates as described in this announcement will be in effect for loans first disbursed on or after July 1, 2021.
A TEACH Grant where the first disbursement is on or after October 1, 2020, and before October 1, 2021, requires a reduction of 5.7% from the award amount for which the student would otherwise have been eligible.
The following chart shows the FY 20 and FY 21 sequester-required TEACH Grant Program reductions as they apply to the 2019-2020 and 2020-2021 award years.
| TEACH Grant Awards | |||||
|---|---|---|---|---|---|
| Award Year | Impacted Awards | Statutory Maximum Scheduled Award Amount | Percentage Reduction from Statutory Award Amount | Dollar Reduction Amount from Maximum Award Amount | Adjusted Maximum Award Amount |
| 2019-2020 | First disbursed prior to October 1, 2019 (FY 19 Sequester) | $4,000 | 6.20% | $248.00 | $3,752.00 |
| First disbursed on or after October 1, 2019, and before October 1, 2020 (FY 20 Sequester) | $4,000 | 5.90% | $236.00 | $3,764.00 | |
| 2020-2021 | First disbursed on or after October 1, 2019, and before October 1, 2020 (FY 20 Sequester) | $4,000 | 5.90% | $236.00 | $3,764.00 |
| First disbursed on or after October 1, 2020, and before October 1, 2021 (FY 21 Sequester) | $4,000 | 5.70% | $228.00 | $3,772.00 | |
The Department of Education has released information indicating the Direct Loan student origination fee will decrease for loans first disbursed after October 1, 2020. The loan fee for Direct Subsidized Loans and for Direct Unsubsidized Loans will be 1.057%. The fee on a loan for $5,500 will be $58.13 (truncated to nearest cent, not rounded). The loan fee for Direct PLUS Loans (for both parent borrowers and graduate and professional student borrowers) is 4.228%. The fee on a $10,000 Direct PLUS loan would be $422.80 (truncated to nearest cent, not rounded).
The following chart shows the sequester-required loan fees for FY 2020 and FY 2021.
| Direct Loan Fees for FY 20 and FY 21 | |||
|---|---|---|---|
| Loan Type | First Disbursed | Loan Fee Percent | Fee Example |
| Direct Subsidized Loans and Direct Unsubsidized Loans | FY 20 On or after October 1, 2019, and before October 1, 2020 | 1.059 | $58.24 on a $5,500 loan |
| FY 21 On or after October 1, 2020, and before October 1, 2021 | 1.057 | $58.13 on a $5,500 loan | |
| Direct PLUS Loans (Parent and Grad/Prof Student) | FY 20 On or after October 1, 2019, and before October 1, 2020 | 4.236 | $423.60 on a $10,000 loan |
| FY 21 On or after October 1, 2020, and before October 1, 2021 | 4.228 | $422.80 on a $10,000 loan | |
| Loan fee calculations that result in more than two decimal places must be truncated to two digits after the decimal point (cents). | |||
The chart below shows the interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2020, and before July 1, 2021.
| Loan Type | Borrower Type | Fixed Interest Rate |
|---|---|---|
| Direct Subsidized Loans | Undergraduate Students | 2.75% |
| Direct Unsubsidized Loans | Undergraduate Students | 2.75% |
| Direct Unsubsidized Loans | Graduate/Professional Students | 4.30% |
| Direct PLUS Loans | Parents of Dependent Undergraduate Students and Graduate/Professional Students | 5.30% |
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