- Office of Student Financial Aid
- Loans FAQs
What is a student loan?
Direct loans are borrowed money from the federal government and must be repaid.
Federal loans are available for both students and parentsand have interest rates and requirements set by the government. Visit ourTypes of Aidpage for more information.
If I would like to accept my federal loans, what are the steps?
Carefully review the Aid Offers and Disbursem*nts tab on our Financial Aid Process page for information about accepting federal loan offers. Information about the Parent PLUS loan is available on the Additional Aid Options tab.
What is the deadline to accept the loans I was offered?
There is no hard deadline to accept your loans. If you need your loans for the upcoming academic year, it is best to accept them by mid-July.
If I am worried about repaying a loan, should I still take one out?
Student loans are designed for students. That is, there are limits on how much you can take out and there are flexible repayment plans. Learn more about student loan types, interest ratesand repayment through our Money Matters videos.
What is the difference between Subsidized and Unsubsidized Federal Student Loans?
Subsidized loans: better terms to help out undergraduate students with financial need.
Unsubsidized loans: no requirement to demonstrate financial need and are available to both undergraduate and graduate students.
Subsidized loans:based on need. With these loans the federal government pays the interest while the student is in school. After graduation, the student is responsible for paying the loan and the interest.
Unsubsidized loans:not based on need. It is based on your grade level and the cost of education minus other aid. Interest begins adding to your payments as soon as you take out the loan.
What is the maximum loan amount I can borrow in an aid year?
| Year | Dependent Students (except students whose parents are unable to obtain PLUSLoans) | Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUSLoans) |
|---|---|---|
| First-Year Undergraduate Annual Loan Limit | $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 Annual Loan Limit | $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 and Beyond Undergraduate Annual Loan Limit | $7,500—No more than $5,500 of this amount may be in subsidized loans. | $12,500—No more than $5,500 of this amount may be in subsidized loans. |
| Graduate or Professional Students Annual Loan Limit | Not Applicable (all graduate and professional students are considered independent) | $20,500 (unsubsidized only) |
| Subsidized and Unsubsidized Aggregate Loan Limit | $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 aggregate limit includes all federal loans received for undergraduate study. |
I’ve decided I don’t want a loan that I accepted earlier. How do I cancel it?
If the loan has not been paid to your account you can use the student portal to decline it by accepting $0. If a loan has been paid to your account already, please send an email to loantalk@umd.edu.
My parent wants to cancel their PLUS loan but it’s already been paid to my account. What should I do?
Send an email to loantalk@umd.edu including the student’s name and university ID number.
I did not accept my full aid for the semester. Can I still get the rest?
Yes, please email loantalk@umd.edu. Send us your full name and university ID number.
What is the total amount of my loans?
You can use the National Student Loan Data Systemto review all the federal student loans you have taken out while an undergraduate and/or graduate student. You will need your FSA ID to access this information.
When do I have to pay back my federal loans?
- Federal student loans go into repayment six months after you drop below half-time enrollment or when you graduate.
- Federal parent loans generally begin repayment 60 days after the final loan disbursem*nt; however, parents may request a delay in payment for up to four years.
I have a Perkins Loan but the program is phasing out, what should I do now?
Visit the Perkins loan siteto learn more.
