Federal Student Loans Overview
Federal student loan programs offer low-interest loans with borrower-friendly repayment terms for eligible students and parents. Before borrowing, we encourage you to explore eligibility, loan types, limits, and application steps outlined below.
Loan Types and Eligibility
Enrollment Requirement
To receive federal student loans, students must be enrolled at least half-time (6 hours undergraduate, 5 hours graduate/professional).
Direct Subsidized Loans
Available to undergraduate students with financial need.
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Interest does not accrue while enrolled at least half-time
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Repayment begins six months after graduation or dropping below half-time
Direct Unsubsidized Loans
Available to undergraduate and graduate students, regardless of financial need.
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Interest accrues from the date of disbursement
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Same repayment timeline as Subsidized Loans
Note: Students must complete Entrance Counseling and a Master Promissory Note (MPN) before receiving funds. Exit Counseling is required when graduating or dropping below half-time.
Loan Limits: Undergraduate Students
Annual Loan Limits
| Academic Level | Dependent Undergraduate | Independent Undergraduate |
|---|---|---|
| Freshman | $5,500 (maximum $3,500 Subsidized) | $9,500 (maximum $3,500 Subsidized) |
| Sophomore | $6,500 (maximum $4,500 Subsidized) | $10,500 (maximum $4,500 Subsidized) |
| Junior & Senior | $7,500 (maximum $5,500 Subsidized) | $12,500 (maximum $5,500 Subsidized) |
Aggregate (Lifetime) Loan Limits
| Student Type | Aggregate Loan Limit |
|---|---|
| Dependent Undergraduate Students | $31,000 (no more than $23,000 subsidized) |
| Independent Undergraduate Students | $57,500 (no more than $23,000 subsidized) |
Loan Limits: Graduate & Professional Students
Non-Legacy Borrowers (New Rules)
| Student Type | Annual Loan Limit | Aggregate (Lifetime) Loan Limit |
|---|---|---|
| Graduate | $20,500 Unsubsidized | $100,000 Unsubsidized (not including Undergraduate loans) |
| Professional (Pharmacy and Veterinary Medicine) | $50,000 Unsubsidized | $200,000 Unsubsidized (not including Undergraduate loans) |
| Other Professional** | $50,000 Unsubsidized | $200,000 Unsubsidized (not including Undergraduate loans) |
Legacy Borrowers (Grandfathered)*
| Student Type | Annual Loan Limits | Aggregate (Lifetime) Loan Limits |
|---|---|---|
| Graduate | $20,500 Unsubsidized | $138,500 (including Undergraduate loans) |
| Professional (Pharmacy and Veterinary Medicine) | Pharmacy - $33,000 (9-month) or $37,167 (12-month) | Pharmacy and Veterinary Medicine - $224,000 (including Undergraduate loans) |
| Vet Med - $40,500 (9-month) or $47,167 (12-month) | ||
| Other Professional** | $20,500 Unsubsidized | $138,500 (including Undergraduate loans) |
Lifetime Federal Loan Cap - No unified lifetime cap due to separate program limits.
**Federally Designated Professional Programs.
Pharmaceutical Sciences/ PhD/ Option in Pharmaceutics
Pharmaceutical Sciences/ PhD/ Option in Medicinal Chemistry
Pharmaceutical Sciences/ PhD/ Option in Health Outcomes
Pharmaceutical Sciences/ PhD/ Option in Pharmacology
Psychology/ Clinical/ PhD
Education/ Counseling Psychology/ PhD
Educational Psychology/ PhD
Psychology/ Industrial/Organizational Option/ PhD
Veterinary Medicine
Pharmacy, Doctor of
Health Professions Student Loan (HPSL)
Available to eligible Pharmacy and Veterinary Medicine students with financial need.
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Interest: 5%
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Repayment: Begins 12 months after half-time enrollment ends
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Parental financial data is required, even for independent students.
Alternative/Private Loans
While federal loans are recommended, students may explore private lenders. We maintain a list of lenders who have been active with Auburn University over the past 3 calendar years, but will process through any lender of your choice, pending general and lender-specific eligibility requirements. Please review the list of historical lenders here: Auburn University Historical Private Lender List
Federal PLUS Loans (Parent & Graduate)
Federal PLUS Loans are unsubsidized loans available to two groups:
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Parent PLUS Loans – For biological, adoptive, or qualifying stepparents of dependent undergraduate students
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Graduate PLUS Loans – For students enrolled in a graduate or professional degree program
Eligibility
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A valid FAFSA must be on file with Auburn University.
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The student (or the graduate applicant) must be enrolled at least half-time.
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The borrower must be a U.S. citizen or eligible noncitizen.
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Borrowers must not have an adverse credit history (credit check required).
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Students must meet Satisfactory Academic Progress (SAP) standards.
Refund Options (Parent PLUS only)
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Parents may request refunds (credit balances) be sent either:
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To the student (via direct deposit), or
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To the parent (via mailed paper check only – no direct deposit allowed)
- If the treatement of excess funds needs to be changed after the application is submitted, please follow the linked instructions.
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Interest Rate & Fees (2026–27)
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Interest Rate: 9.07% (fixed)
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Origination Fee: 4.228% (deducted from each disbursement)
Application Instructions
Apply at studentaid.gov/plus-app using your FSA ID:
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Log in as the parent (for Parent PLUS) or student (for Graduate PLUS).
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Under “Loans and Grants,” select “Apply for a PLUS Loan.”
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Choose Auburn University as the school.
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Enter all required information and complete the application.
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If approved, complete a Master Promissory Note (MPN):
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Parent: Select “I’m a Parent of an Undergraduate Student”
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Graduate: Select “I’m a Graduate/Professional Student”
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If Denied
You will be given options at the time of application:
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Appeal the credit decision
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Apply with a credit-worthy endorser
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Decline the loan (undergraduate students may qualify for additional Unsubsidized Loan funds)
- View your loan servicer and repayment/consolidation options
- If issues arise with your loan servicer, contact the FSA Student Loan Ombudsman Group for help
