Federal Direct Student Loans

To be considered for Federal Direct Student Loans, students must:

• Complete the FAFSA each year
• Be enrolled at least half-time
• Meet all federal student aid eligibility requirements

Loan eligibility and borrowing amounts are based on factors including:

• Academic year in school
• Dependency status
• Enrollment level
• Cost of attendance
• Other financial aid received

Federal Direct Subsidized Loan

Federal Direct Subsidized Loans are available to undergraduate students who demonstrate financial need.

• Available only to undergraduate students
• Based on financial need
• The federal government pays the interest while the student is enrolled at least half-time and during certain periods of deferment
• Repayment begins after the student graduates, leaves school, or drops below half-time enrollment

Federal Direct Unsubsidized Loan

Federal Direct Unsubsidized Loans are available to eligible undergraduate and graduate students regardless of financial need.

• Available to undergraduate and graduate students
• Not based on financial need
• Interest begins accruing when the loan is first disbursed
• Students may choose to pay interest while enrolled or allow it to accrue until repayment

Graduate Student Borrowing Changes

Beginning with loans first disbursed on or after July 1, 2026, Federal Direct Graduate PLUS Loans are no longer available for new borrowers. As a result:

• Federal Direct Unsubsidized Loans are now the primary federal loan option for most graduate students.
• Professional students (such as law, medicine, and similar programs) have higher annual and lifetime Federal Direct Unsubsidized Loan limits established under federal law.

Graduate Loan Legacy Provision

Some currently enrolled graduate students may remain eligible to borrow through previous loan rules under a limited federal transition provision. To qualify, both of the following requirements must be met:

• The student remains continuously enrolled in the same program of study at Miami University in which they were enrolled on June 30, 2026 AND
• The student received either:
  • a Federal Direct Graduate PLUS Loan OR
    a Federal Direct Unsubsidized Loan for that same program before July 1, 2026

Graduate Plus Legacy: Eligible students may continue borrowing through the Graduate PLUS Loan Program for up to three years or for the remainder of the published length of their academic program, whichever is shorter, provided they maintain continuous enrollment.

Graduate Unsubsidized Legacy: Eligible legacy students are also exempt from the new Direct Unsubsidized aggregate and lifetime borrowing limits during this timeframe. Instead, their aggregate borrowing limit remains unchanged at $138,500 (which includes all undergraduate loans).

Students who enroll part-time starting in 2026-27 must have their Federal Direct Unsubsidized and/or Graduate PLUS Loans adjusted in accordance with changes to the law.

Federal student loans are subject to annual and lifetime (aggregate) borrowing limits based on academic level, dependency status, and enrollment.

Planning Ahead

Federal Direct Student Loans have both annual and lifetime borrowing limits. When deciding how much to borrow, consider your entire academic program, not just the current year.

Borrowing only what you need each year can help preserve eligibility for future semesters and reduce the amount you will repay after graduation.

Loan Terms and Costs

• A federal loan fee is deducted from each disbursement
• Interest rate is fixed annually by the U.S. Department of Education

Students apply for federal student loans by completing the FAFSA each year. After completing the FAFSA:

• Eligible students are offered loan amounts as part of their financial aid offer.
• Students accept loans while finalizing their financial aid.
• Entrance Counseling and the Master Promissory Note (MPN) must be completed before loan funds can be disbursed (see below).

First-time borrowers of Federal Direct Loans must complete the following at StudentAid.gov before loan funds can be disbursed:

Entrance Counseling

Explains loan terms, interest, repayment responsibilities, and borrower rights.

Graduate Entrance Counseling satisfies counseling requirements for Federal Direct Subsidized Loans, Federal Direct Unsubsidized Loans, and Graduate PLUS Loans (when applicable).

Master Promissory Note (MPN)

The Master Promissory Note (MPN) is a legal agreement in which you promise to repay your Federal Direct Loan(s), including any accrued interest and fees.

An MPN typically covers multiple Federal Direct Loans over several years unless otherwise limited under federal regulations.

Federal Direct Student Loans must be accepted and all loan requirements completed before funds can be disbursed.

• Loan funds are applied directly to the student's university account.
• Eligible loans may be disbursed as early as 10 days before the beginning of the semester.
• Loans are generally disbursed in two equal installments during the academic year.
• If loan funds exceed university charges, the remaining credit balance will be refunded to the student.

Students may cancel all or portions of their loan(s) after the funds have been credited to their account by contacting the One Stop in writing at OneStop@MiamiOH.edu within 30 days after the date of the disbursement notice.

Federal regulations require students to complete Exit Counseling at StudentAid.gov when they:

• Graduate
• Leave Miami University
• Drop below half-time enrollment

Exit Counseling helps borrowers understand:

• Their repayment responsibilities
• Estimated monthly payments
• Available repayment plans
• Options for avoiding delinquency and default
• How to contact their federal loan servicer

View a Federal Student Aid video for step-by-step instructions on how to complete the required Exit Counseling.

After the first disbursement of a Federal Direct Student Loan, the loan is assigned to a federal loan servicer. The loan servicer will provide information about your loan, repayment requirements, and your repayment schedule. You can review your federal student loans and find your loan servicer’s contact information by logging into StudentAid.gov.

Students enter repayment after a six-month grace period once they:

• Graduate,
• Leave school OR
• Drop below half-time enrollment.

For Federal Direct Unsubsidized Loans, interest begins to accrue when the first loan disbursement is made, including during periods of deferment. The federal government pays the interest on eligible Federal Direct Subsidized Loans while the student is enrolled at least half-time and during certain periods of deferment.

Borrowers are placed into a federal repayment plan and may choose from available repayment options, including:

• Tiered Standard Repayment Plan
• Repayment Assistance Plan (RAP) if eligible

Tiered Standard Repayment Plan

Under the Tiered Standard Repayment Plan, monthly payments are fixed for the life of the loan. The repayment term is based on the total principal balance when repayment begins.

Sample Repayment

The example below illustrates how loan repayment may look for a borrower with $26,946 in federal student loans at a 6.5% interest rate. Actual payments will vary based on your interest rate, repayment plan, and loan balance.

 Repayment Assistance Plan (RAP)

The Repayment Assistance Plan (RAP) is an income-driven repayment option that bases its monthly payments on the borrower’s income and family size. Monthly payments may increase or decrease as the borrower’s financial circumstances change.

Loan Deferment, Forbearance, or Consolidation

If you experience difficulty making your loan payments, you may be eligible for a deferment or forbearance, depending on your circumstances. Contact your loan servicer to discuss available repayment assistance options. Visit StudentAid.gov for a listing of forgiveness programs.

Loan consolidation may be an option for some borrowers to avoid loan delinquency or a default. A Direct Consolidation Loan allows borrowers to combine one or more federal education loans into a new loan that offers several advantages. For more information, visit StudentAid.gov.

Important Repayment Information

Federal Direct Student Loans first disbursed before July 1, 2026 may be eligible for certain legacy repayment provisions during a limited transition period.

Federal Direct Student Loans first disbursed on or after July 1, 2026 are subject to repayment options established under current federal law, including the Tiered Standard Repayment Plan and the Repayment Assistance Plan (RAP), if eligible.

For more information, visit our One Big Beautiful Bill Act page.

Borrow only what is needed to cover educational expenses after scholarships, grants, and other aid. Before borrowing, consider:

• How much you need after scholarships, grants, and savings
• Your expected monthly loan payment after graduation
• Your anticipated salary in your chosen career
• Your long-term financial goals

Borrowing responsibly now can help reduce your monthly payments after graduation. Before accepting additional loans, review your current federal student loan balance and only borrow what you need.

You can view your federal student loan history, current balances, and loan servicer information by logging into StudentAid.gov with your FSA ID. You can also view your loans awarded through Miami in your loan summary portal.

Smart Borrowing Tips

Managing your student loans starts with understanding how borrowing affects your future. Use StudentAid.gov’s budgeting tools to help you plan while in school and after graduation.

• Understand Loan Details and Terms: Review your Entrance Counseling and Master Promissory Note (MPN) before accepting loans.
• Borrow Only What You Need: Limit borrowing to direct educational costs such as tuition and fees.
• Be Aware of Loan Costs: Remember loans must be repaid with interest and may include fees in addition to the amount borrowed.
• Borrow Within a Reasonable Future Budget: A general guideline is that your monthly student loan payment should not exceed 8 to 10% of your expected monthly income. 

Before accepting a loan, use the Federal Repayment Calculator to estimate:

• Your expected monthly payment
• Total repayment cost
• Repayment options available based on your loan type
• How additional borrowing may affect your future payments

Borrowers should fully understand the repayment options available to them. For more information, review the “Repayment” areas on our Federal Direct Student Loans and Federal Direct Parent PLUS Loans (PLUS) pages.

Additional information is available at StudentAid.gov.

The U.S. Bureau of Labor Statistics publishes estimated salaries for hundreds of positions and careers around the country. Research expected earnings in your intended career field to help you make informed borrowing decisions. Understanding your future repayment obligation can help you borrow only what you need.