Federal loans need to be repaid, in some cases with interest, after you graduate or leave college. The federal direct loan program, made up of subsidized and unsubsidized loans, is funded through the U.S. Department of Education.
The Free Application for Federal Student Aid, commonly known as the FAFSA, is the only application you need to be considered for federal loans. We recommend you review our FAFSA FAQs to familiarize yourself with the process. To learn more about federal loans, check out the Federal Student Aid pages listed below:
The following table shows the annual and aggregate limits for subsidized and unsubsidized loans.
|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 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.
Eligibility and Enrollment Requirements
- Parent PLUS loans are only available to parents, step-parents and legal guardians of dependent students.
- The student and the parent/guardian must be a U.S. citizen, U.S. permanent resident or eligible non-citizen as defined by the U.S. Department of Education.
- The student must enroll for at least six credits in a degree-granting program for each semester in which the PLUS loan will be received.
- Parents may borrow up to the student’s yearly estimated cost of education, minus all other aid the student is receiving (including other student loans). There is no cumulative borrowing limit.
How to Apply
- Please visit the Federal Student Aid website to apply for a Parent PLUS Loan and sign a promissory note.
Entrance Counseling and Exit Counseling are completed through the Federal Student Aid website and the results of these sessions will be automatically sent to UMD.
If you are borrowing a federal loan, you must complete a counseling session. Even if you have completed loan counseling at another school, you will need to complete it again for UMD. If you have borrowed federal loans while attending UMD and you will be graduating, withdrawing or taking a semester off from the university, you must complete an exit counseling session.
Graduate Students or Professional Programs
Grad PLUS loans also require counseling. If you are a first-time graduate student or part of a professional program you need to complete counseling before receiving your loan funds.
Teacher Education Assistance for College and Higher Education (TEACH)
To receive the TEACH Grant, students must complete a new TEACH counseling session and Agreement to Serve at the beginning of each academic year before they can receive new funds.
Borrowers of federal loans must complete the Annual Student Loan Acknowledgment each year for any federal loans that have been accepted.
- This must be completed by student borrowers, as well as parent borrowers who have accepted a Parent PLUS Loan.
- Loans cannot be disbursed until this requirement has been completed. The Office of Student Financial Aid will receive confirmation of completion from the U.S. Department of Education.
We understand that obtaining grant funding is important to students who are in need of financial assistance. Below are need-based and service-based grants that students may qualify for while attending UMD.
This need-based grant is available only to undergraduate students without a prior bachelor's degree who demonstrate exceptional financial need according to a federal eligibility formula.
Federal Supplemental Educational Opportunity Grant (SEOG)
- Pell Grant eligible undergraduate students who have demonstrated the highest financial need as determined by the FAFSA.
- Complete the FAFSA by January 1
- Amounts offered may vary based on funding level
- Must be enrolled full-time
Children of Fallen Heroes Scholarship
- Pell Grant eligible undergraduate students whose parent or guardian died in the line of duty while serving as a public safety officer.
- Federal Pell Grants are awarded to both full- and part-time undergraduate students who have not earned a bachelors or professional degree.
- Must be less than 24 years of age or enrolled at an institution of higher education at the time of their parent or guardian’s death.
The Federal Work-Study (FWS) program ensures that part-time jobs are available for students who need them while they're working on their degree. Some great jobs are only available to FWS students!
The FWS program is available to eligible students based on the information provided on the FAFSA. If you qualify for an FWS job, the work-study offer will be listed on your financial aid offer, detailing the amount of FWS money you are able to earn each year. If you qualify for the FWS program, you will then need to review the available FWS jobs, apply and interview for a position. Participating in this program is optional.
If FWS isn’t listed on your financial aid offer and you still want to work, seek out non-work-study jobs on campus or with off-campus businesses. You can also use our Alternative Aid Options page as a resource.
- Students who have demonstrated financial need as determined by our office
- Students that selected Yes to the FWS question on the FAFSA
- Students that complete the FAFSA by the January 1 priority deadline
- Students that are enrolled at least half-time (6 credits or more)