intro

Federal student loan programs provide low-interest loans and advantageous services for eligible students and parents.

For detailed loan requirements, please refer to the Student Loan FAQ.

loan programs

Federal Direct Loans

  • Federal Direct Subsidized Loans

    Available to undergraduate students with financial need, with specific annual and aggregate loan limits. No interest accrues during eligible periods of enrollment; interest accrual and repayment begins six months after graduation or after the student is no longer enrolled half-time.

  • Federal Direct Unsubsidized Loans

    Available to both undergraduate and graduate/professional students, are not need-based and have predetermined annual and aggregate loan limits. Interest begins accruing from the disbursement date, and repayment begins six months after graduation or when the student is no longer enrolled half-time.

Students must complete Entrance Counseling and Master Promissory Note (MPN) before disbursement. Federal student loan borrowers who graduate or drop below half-time enrollment must complete Exit Counseling. Repayment schedules are provided by your federal loan servicer after the grace period ends.

  • Annual Loan Limits (combined maximum for subsidized and unsubsidized) under the Direct Loan Programs:

    • Dependent Undergraduate students

      • Freshmen - $5,500, no more than $3,500 Subsidized

      • Sophomores - $6,500, no more than $4,500 Subsidized

      • Juniors and Seniors - $7,500, no more than $5,500 Subsidized

    • Independent Undergraduate students

      • Freshmen - $9,500, no more than $3,500 Subsidized

      • Sophomores - $10,500, no more than $4,500 Subsidized

      • Juniors and Seniors - $12,500, no more than $5,500 Subsidized

    • Graduate Students - $20,500 Unsubsidized.

    • Veterinary Medicine students: $20,500 Unsubsidized plus the maximum increased Unsubsidized amount of $20,000 for a 9 month academic year or plus $26,667 for a 12 month academic year, limited to cost of attendance.

    • Pharmacy students: $20,500 Unsubsidized plus the maximum increased Unsubsidized amount of $12,500 for a 9 month academic year, or plus $16,667 for a 12 month academic year, limited to cost of attendance.

  • Aggregate loan limits

    Aggregate loan limits refer to the maximum amount of federal student loans that a student can borrow over their academic career.

    • Undergraduate Dependent Students: $31,000 (no more than $23,000 of which can be subsidized)

    • Undergraduate Independent Students: $57,500 (no more than $23,000 of which can be subsidized)

    • Graduate Students: $138,500 (includes undergraduate amounts)

    • Veterinary Medicine and Pharmacy students: $224,000 (includes undergraduate amounts)

Federal Parent Plus Loans

Available to dependent students' parents, the maximum amount is the estimated Cost of Attendance minus other aid received by the student. Additional information and application instructions are located on our Forms page.

Federal Graduate PLUS Loans

Eligible graduate students are allowed to borrow under the Federal Graduate PLUS program to assist with educational costs. It is advised that you maximize your annual Direct Unsubsidized eligibility before you apply for the Graduate PLUS Loan.

Who Services My Federal Direct Loans

Students and parent borrowers may access your loan servicer and payment information by logging into your StudentAid.gov account.

Health Professions Student Loan

Available to Pharmacy and Veterinary Medicine students demonstrating financial need, with a 5% interest rate and repayment starting 12 months after half-time enrollment ends.

Parental Financial Data Requirement: Even for independent students, parental financial data must be provided to be considered for this loan program.

Non-federal Alternative Loans

While federal loans are recommended, private alternative loans can be explored. Students are encouraged to research lenders and loan terms independently. We will process alternative loan requests with the lender of your choice, but we cannot provide recommendations for specific lenders

Preferred Lender Arrangements

Auburn University does not maintain a preferred lender list but processes private alternative loans from any chosen lender.

Federal Cohort Default Rate

Auburn University Federal Student Loan Cohort Default Rate (CDR)

  • Fiscal Year 2019 Draft Cohort Default Rate: 0.5%
  • Percentage of student borrowers 38.4%
  • Federal Student Loan Cohort Default Rate (CDR) National Average
  • Fiscal Year 2019 Draft Cohort Default Rate National Average: 2.3%

FSA Student Loan Ombudsman Group

If you have experienced issues with your federal student loan servicer re: repayment or consolidation and you've not been able to resolve the issues with your servicer, you may contact the Federal Student Aid Ombudsman Group as a last resort. Contact information is listed on their website. 

Student Loan Code of Conduct

The Office of Financial Aid and Scholarships has established a set of principles and policies to govern educational lending practices for undergraduate, graduate and professional students. Our staff will follow this Code of Conduct to ensure the integrity of the student loan process. 

Last updated: 02/20/2024