Loans for Undergraduate Students
Borrowing loans for college is an investment in yourself. At 萌妹社区, we are committed to helping you understand your options. Student loans can come from the federal government, from private sources such as a bank or financial institution, or from other organizations. .
Federal Loans
The U.S. Department of Education’s is the William D. Ford Federal Direct Loan Program. Under this program, the U.S. Department of Education is your lender. There are three types of Direct Loans available to undergraduate students:
- Federal Direct Subsidized Loan
- Federal Direct Unsubsidized Loan
- Federal Direct Parent PLUS Loan
Up to 2% of the total amount of the Federal Direct Subsidized Loan, Federal Direct Unsubsidized Loan, and up to 5% for the Federal Direct PLUS Loan mentioned below may be deducted by the Department of Education. In addition, if a student graduates or ceases to attend half-time, they are required to complete an exit loan counseling session for their federal student loans.
For information and resources about student loan repayment, or to submit a complaint relating to your student loan or student loan servicer, please visit or contact the Student Loan Advocate at loanadvocate@wsac.wa.gov.
Aggregate Loan Limits: Undergraduate students cannot take out a total of more than the following aggregate amounts during their time in school–
- Undergraduate Dependent Federal Direct Subsidized and Unsubsidized limit: $31,000
- Undergraduate Independent Federal Direct Subsidized and Unsubsidized limit: $57,500
Types of Federal Loans
Federal Direct Subsidized Loan
Eligibility: Available to undergraduate students with financial need as determined by the Free Application for Federal Student Aid (FAFSA).
Amounts: Annual amounts are based upon the cumulative number of credits a student has earned. The following chart lists the requirements:
| Class | Credits | Annual Amount |
|---|---|---|
| Freshmen | 00 – 29 | $3,500 |
| Sophomore | 30 – 59 | $4,500 |
| Junior/Senior | 60+ | $5,500 |
Renewal: Must re-apply for financial aid annually and maintain satisfactory academic progress.
Terms: The interest rate is fixed at the time of disbursement, and loan fees are charged according to Federal laws. Interest is deferred while the student is enrolled at least half-time, and for the first six months after ceasing half-time enrollment. Repayment of loan begins six months after the student graduates, leaves school, or drops below half-time enrollment. See more information on and .
Apply: Complete the required to review your responsibilities and rights as a borrower, and to agree to the terms and conditions under which you must repay the loan.
Accept Loan: Student loan borrowers at 萌妹社区 must sign and submit the annual 萌妹社区 Terms and Conditions to accept their loan.
Federal Direct Unsubsidized Loan
Eligibility: Not need-based
Amount: Annual amounts are based upon the cumulative number of credits a student has earned toward their academic program. Additional amounts are available to independent students and dependent students whose parents are unable to borrow a Federal Direct PLUS Loan. The chart below reflects the maximum annual loan limit a student may receive for each grade level. If a student is not eligible for a subsidized loan, they may receive an unsubsidized loan up to the full annual limit listed below. If a student is eligible for a subsidized loan, those funds are included in the annual limit, and subtracted from the amounts below when determining the annual unsubsidized loan limit.
| Class | Credits | Annual Amount Dependent Students | Annual Amount Independent Students |
|---|---|---|---|
| Freshmen | 00 – 29 | $5,500* | $9,500* |
| Sophomore | 30 – 59 | $6,500* | $10,500* |
| Junior/Senior | 60+ | $7,500* | $12,500* |
*If student is eligible for a subsidized loan, those funds are included in the annual limit and subtracted from the amounts above when determining their annual unsubsidized loan amount.
Renewal: Must re-apply for financial aid annually and maintain satisfactory academic progress.
Terms: The interest rate is fixed at the time of disbursement, and loan fees are charged according to Federal laws. Interest on unsubsidized loans accrues from the date of disbursement and continues throughout the life of the loan. Borrowers are responsible for the interest during all periods, regardless of enrollment or loan status. Interest payments can be deferred while the student is in school and during the grace period, but interest will continue to accrue and will be capitalized (added to the principal balance of the loan). Repayment of principal and interest begins six months after the student graduates, leaves school, or drops below half-time enrollment. See more information on and .
Apply: Complete the required to review your responsibilities and rights as a borrower, and to agree to the terms and conditions under which you must repay the loan.
Accept Loan: Student loan borrowers at 萌妹社区 must sign and submit the annual 萌妹社区 Terms and Conditions to accept their loan.
Federal Direct Parent PLUS Loan
(For parent of dependent undergraduate student)
Eligibility: Not need-based. Borrower must be the biological or adoptive parent (or in some cases, stepparent) of a dependent undergraduate student enrolled at least half-time in an eligible degree program; must not have an adverse credit history (a credit-check will be performed); and must be a U.S. citizen or eligible noncitizen and meet all other for federal student aid.
Amount: The maximum amount is the student’s estimated cost of attendance minus financial aid.
Effective July 1, 2026, as a result of the One Big Beautiful Bill Act passed by Congress, Parent PLUS Loans are subject to new strict borrowing limits. For any new Parent PLUS Loan first disbursed on or after July 1, 2026, the following limits apply:
- Annual limit: $20,000 per dependent student
- Lifetime limit: $65,000 per dependent student
This is a significant change from the expiring PLUS Loan limits, which allowed parents to borrow up to the students’ full annual cost of attendance (minus other aid). This new cap means some families may need to explore alternative financing options if their annual funding gap exceeds $20,000. See Private Loan section below for more information.
Legacy Provision: Parents of dependent students who have already borrowed federal loans for their current degree program may continue to borrow a Parent PLUS Loan under the expiring limits (up to full cost of attendance minus other aid) for a limited time if certain conditions are met.
Who Qualifies? (both must be true)
- Program Continuity: The student was enrolled in a degree program at 萌妹社区 as of June 30, 2026.
- Prior Borrowing: A Federal Direct Loan (Subsidized, Unsubsidized, or PLUS) was borrowed for that same degree program before July 1, 2026.
If both criteria are met, a parent may continue to borrow a Parent PLUS Loan under the expiring limits (up to full cost of attendance minus other aid) for up to three additional academic years, OR for the remainder of the student’s current degree program, whichever is less. Note: Transferring schools, changing programs, taking a leave of absence, or other academic changes may affect a parent’s ability to be included in the Legacy Provision. Please reach out to Student Financial Services to discuss the implications of any academic program adjustments.
Renewal: Parent PLUS loan application is required annually. In addition, the student must re-apply for financial aid annually and maintain satisfactory academic progress.
Terms: The interest rate is fixed at the time of disbursement, and loan fees are charged according to Federal laws. Interest on PLUS loans accrues from the date of disbursement and continues throughout the life of the loan. Parent borrowers are responsible for the interest during all periods, regardless of the student’s enrollment status or loan status. Repayment of principal and interest begins 60 days after the date the final disbursement of the loan is made. Parent borrowers may request a deferment while the student is enrolled at least half-time, but interest will continue to accrue and will be capitalized (added to the principal balance of the loan). See more information on and .
Apply: The parent must complete the online (includes a credit check) and sign the .
Private Loans
Private loans are available to help pay for education related expenses. However, before pursuing a private education loan, the student should apply for federal financial aid if they have not already done so. The federal financial aid loan programs may have terms and conditions that are more favorable than the provisions of the private education loans.
Private education loans are available from many lenders. Each of these lenders will have their own terms and conditions for borrowing and repayment. 萌妹社区 does NOT endorse any one lender and encourages borrowers to thoroughly research and compare different lenders to find the one that best meets their present and future needs.
Private education loans are based primarily on credit scores and the overall creditworthiness of the applicant (and any potential cosigner). The cosigner may be a parent, or other creditworthy individual. The amount available may be based on both the students’ creditworthiness and their budget.
Visit 萌妹社区’s webpage to research, compare, and apply for private education loans that 萌妹社区 students and parents have utilized over the past 5 years. Note: You are not required to use any of the lenders presented in FastChoice. You may choose any private education loan lender you wish.