Loans and Grants

Federal Subsidized Loans

Federal Direct Student Loans are one form of student aid from the federal government. Under the Federal Direct Student Loan program students borrow money for school from the federal government. The Office of Financial Aid Administration encourages students to evaluate loan options carefully, borrow only what is really needed and remember that loans must be repaid.

Recent Changes: Student Loan Implications for the 2026-27 Academic Year 

Federal Direct Graduate PLUS Loans Are Being Phased Out

Beginning July 1, 2026, new graduate and professional students will no longer be able to take out Federal Direct Graduate PLUS Loans.

If you’re currently enrolled and have already borrowed a GradPLUS Loan before that date, you can continue to access GradPLUS funds for up to three more years or until you finish your program—whichever comes first.

This continuation applies only to your current program of study. If you start a new program after July 1, 2026, GradPLUS Loans will no longer be available for that program.

New Graduate Loan Limits

Also starting July 1, 2026:

  • Professional students (for example, those in medicine, law, or similar licensure-based programs) may borrow up to $50,000 per year, with a lifetime limit of $200,000 in federal Unsubsidized Loans.
  • Other graduate students may borrow up to $20,500 per year, with a lifetime limit of $100,000.

Students already enrolled and using Unsubsidized or GradPLUS Loans in their current program will keep their current borrowing limits for up to three more years or until their program ends.

Undergraduate Loan Rules Are Not Changing

Undergraduate borrowing limits and Pell Grants will remain the same.

However, Parent PLUS Loans will be capped at $20,000 per student per year and a $65,000 lifetime limit beginning July 1, 2026.

Parents who borrowed before that date can continue borrowing under the current limits for up to three additional years or until their student completes their program. 

Frequently Asked Questions

How much can I borrow?

  • $5,500 is the maximum annual amount a first-year student is eligible for, no more than $3,500 of which can be subsidized.
  • $6,500 is the maximum annual amount a second-year student is eligible for, no more than $4,500 of which can be subsidized.
  • $7,500 is the maximum annual amount a third- or fourth-year student is eligible for, no more than $5,500 of which can be subsidized.
  • $20,500 is the maximum annual amount a graduate student is eligible to borrow in the form of a Stafford Loan.
  • Independent students and students whose parent(s) are denied a Federal PLUS Loan qualify for additional unsubsidized loans.

What is the difference between a subsidized and an unsubsidized loan?

Subsidized Loans
  • You will not be charged interest until you begin repayment on subsidized loans.
  • Repayment begins six months after you graduate or cease to be enrolled at least half-time (including leaves of absence).
  • The interest rate for Federal Direct Subsidized Loans for undergraduate students disbursed on or after July 1, 2025 is 6.39%.
Unsubsidized Loans
  • Interest accrues and must be paid or capitalized while you are still in school and/or during periods of deferment.
  • The interest rate for Federal Direct Unsubsidized Loans for undergraduate students disbursed on or after July 1, 2025 is 6.39%.
  • The interest rate for Federal Direct Unsubsidized Loans for graduate students disbursed on or after July 1, 2025 is 7.94%.

Are there any other federal loans available to graduate students?

The Federal Direct Graduate PLUS Loan is a federal loan available to graduate students. The maximum amount you will be eligible to borrow for the school year will be indicated on your Manhattan University’s award letter. Students often elect to limit the amount which they borrow to the difference between annual direct costs and other financial aid which you have received. Direct costs are those paid directly to Manhattan University including tuition, fees, and room and board for resident students. Indirect costs consist of all other expenses that relate to attendance at Manhattan University. The interest rate on Federal Direct Graduate PLUS Loans is 8.94%.

Are there any federal loans available to parents?

The Federal Direct PLUS Loan (parent loan for undergraduate, dependent students) is a loan from the U.S. Department of Education for parents of undergraduate students who complete a FAFSA and meet general eligibility requirements. Your parent(s) should evaluate whether or not there is a need to borrow in order to assist in the financing of your education. Parents often elect to limit the amount which they borrow to the difference between annual direct costs and other financial aid the student has received. Direct costs are those paid directly to Manhattan University including tuition, fees, and room and board for resident students. Indirect costs consist of all other expenses that relate to attendance at Manhattan University. The interest rate on PLUS loans is 8.94%.

What fees, if any, are associated with these loans?

For student loans, an origination fee of 1.057% of the total loan will be assessed. For PLUS loans, an origination fee of 4.228% will be assessed.

How do I apply for a Federal Direct Student Loan?

  • First time Direct Loan borrowers only must complete a Federal Student Loan Entrance Counseling Session in accordance with federal regulations. Visit www.studentaid.gov and click on “Complete Entrance Counseling”.
  • First time Direct Loan borrowers only must complete a Direct Loan Master Promissory Note (MPN) at www.studentaid.gov. Borrowers will need their FSA ID in order to complete the MPN. If you do not have a FSA ID or cannot recall it, you can request your FSA ID at fsaid.ed.gov
  • Direct loan borrowers must complete the Annual Student Loan Acknowledgment on studentaid.gov.

Where can a borrower go to get their loan information?

The U.S. Department of Education’s National Student Loan Data System (NSLDS) provides borrowers access to information on all student loans and/or federal grant amounts, including information on loan status, outstanding balances, and disbursements.

Can I receive Federal aid if my loans defaulted before March 13, 2020?

The U.S. Department of Education has created a new initiative entitled "Fresh Start". Borrowers who defaulted on their Federal loans before March 13, 2020 may regain eligibility for Federal aid. Borrowers will have to submit a signed statement acknowledging that they are participating in the Fresh Start initiative to regain Federal aid eligibility.