Federal Direct Loans
With direct loans, the lender is the United States Department of Education (DOE). You borrow directly from the DOE to help cover your educational expenses. These loans offer low-interest rates, and you don’t have to begin paying the DOE back until after you graduate or withdraw from classes .
Depending upon your level of financial need, you may be offered one of two types of direct loans:
Federal Direct Subsidized Loan
The federal government pays the interest on a subsidized loan while the borrower is enrolled at least half-time. After you graduate with an undergraduate degree or at the time of withdrawal, the federal government no longer pays the interest on your Federal Direct Subsidized Loan
Who is Eligible?
Students who demonstrate financial need based upon the Free Application for Federal Student Aid (FAFSA)
Interest Rate?
For undergraduate students, the interest rate is fixed at 4.99 percent for the 2022-2023 academic year, with a first disbursement on or after July 1, 2022 and before July 1, 2023.
Other Fees?
1.057 percent origination fee for all loans where the first disbursement is made on or after October 1, 2020, and before October 1, 2022
Minimum Monthly Repayment?
$50 (can be more depending on full amount borrowed)
Federal Direct Unsubsidized Loan
With the unsubsidized loan, you are responsible for paying the interest on your loan. The federal government does not pay the interest as it does with a subsidized loan. You may begin paying the interest while you are still in school or add the interest to the total amount of your loan (capitalization), which you will begin repaying after you leave school, graduate or withdraw from classes.
Who is Eligible?
Students who have filed the Free Application for Federal Student Aid (FAFSA) who do not qualify for a federal direct subsidized loan
Interest Rate?
For undergraduate students, the interest rate is fixed at 4.99 percent for the 2022-2023 academic year, with a first disbursement on or after July 1, 2022 and before July 1, 2023.
Other Fees?
1.057 percent origination fee for all loans where the first disbursement is made on or after October 1, 2020, and before October 1, 2022
Minimum Monthly Repayment?
$50 (can be more depending on full amount borrowed)
Independent students, graduate students and any dependent undergraduates whose parents are denied a Federal Direct Parent Loan for Undergraduate Students (PLUS) due to unsatisfactory credit are automatically eligible for additional federal unsubsidized direct loan. First- and second-year students are eligible for an additional $6,000, and third- and fourth-year students are eligible for an additional $7,000 if the Direct PLUS Loan is denied. This unsubsidized loan amount is in addition to the student’s base loan limits for the Federal Subsidized and Unsubsidized Direct Loan programs listed below.
Maximum Loan Amounts
Under federal direct subsidized and unsubsidized loans, the maximum loan amounts students may borrow per year are as follows:
| Year of Attendance | Base amount | Additional unsubsidized (dependent students EXCEPT students whose parents are denied a PLUS loan) | Additional unsubsidized (independent students and dependent students whose parents are denied a PLUS loan) |
|---|---|---|---|
| First | $3,500 | $2,000 | $6,000 |
| Second | $4,500 | $2,000 | $6,000 |
| Third | $5,500 | $2,000 | $7,000 |
| Fourth | $5,500 | $2,000 | $7,000 |
| Fifth-Year Seniors | $5,500 | $2,000 | $7,000 |
| Graduate Students | $8,500 | n/a | $12,000 |
Applying for a Direct Loan
To apply for a direct loan at Harvey Mudd College, you must complete the Free Application for Federal Student Aid (FAFSA), as well as complete a direct loan entrance counseling session, and submit a completed electronic master promissory note (EMPN). These must be completed prior to receiving your first loan disbursement and before funds can be credited to your student account.
- Complete the direct loan entrance counseling at studentaid.gov. You will need to log in using your Federal Student Aid (FSA) login.
- Complete the direct loan electronic master promissory note (EMPN) at studentaid.gov.
Since subsequent loans will be processed using the same EMPN you initially signed online, you will not need to submit another application for future direct loans that you borrow while attending Harvey Mudd College. You will be able to accept or decline subsequent direct loan offers by signing and returning your financial aid package or by emailing us at financial_aid@hmc.edu using your Harvey Mudd email address. Students may also accept their federal direct loans via the online “Financial Aid @ HMC” portal.
Direct Loan Exit Counseling
If you have previously borrowed through the Federal Direct Loans Program and will be graduating, taking a leave of absence or withdrawing from Harvey Mudd College, federal regulations require you to complete the Exit Counseling. You can refer to the Direct Loan Exit Counseling Guide (PDF) for assistance.