Federal student loans are made through the William D. Ford Federal Direct Loan Program. Eligible students borrow directly from the U.S. Department of Education at participating schools, like UW-Madison.
If you are borrowing Federal Direct Loans for the first time, you must complete both Entrance Counseling and a Master Promissory Note online.
- Based on financial need as determined by our office.
- The federal government pays the interest that accrues while the borrower is in an in-school, grace, or deferment status.
- We encourage all students to borrow this loan before borrowing PLUS or private student loans.
- Only available to undergraduates.
- not based on financial need.
- Interest begins accruing when the funds are disbursed and will accrue through the life of the loan.
- Payment of interest while you’re in school is not required but it will reduce your total repayment amount.
- We encourage all students to borrow this loan before borrowing PLUS or private student loans.
- Available to undergraduates, graduate, and professional students.
If you enroll less than full-time (but are still at least half-time), your Federal Direct Loan(s) will be reduced in proportion to your enrolled credits.
Our team confirms your enrollment at the time of loan disbursement.
If you drop a class or withdraw, your future academic year loan amount may be impacted.
*Read more about all the changes impacting Federal Direct Loan borrowing.
Interest Rates
Grade Level |
Loan Type |
2025-26 RateFirst disbursed between 7/1/2025 and 6/30/2026 |
2026-27 RateFirst disbursed between 7/1/2026 and 6/30/2027 |
| Undergraduates | Sub/Unsub |
6.39% |
6.52% |
| Grads/Professionals | Unsub |
7.94% |
8.07% |
Origination Fee
Loan Type |
2020 FeeFirst disbursed between 10/1/19 and 9/30/20* |
Current FeeFirst disbursed between 10/1/20 and 9/30/27* |
| Sub/Unsub |
1.059% |
1.057% |
*Due to Sequestration – origination fees may adjust for all federal direct loans on October 1 each year.
Repayment begins after your grace period, six months after you graduate or are no longer enrolled at least half-time.
During your grace period your loan servicer will contact you with your total loan amount, accrued interest and first payment date. They will help you choose a monthly payment plan, set up auto-debit, or get a deferment if needed. Read more about what happens to your loans when you graduate or leave school on our Leaving UW page.
*Read more about all the changes impacting Federal Direct Loan borrowing.
Otherwise, everything you could want to know about repaying your federal student loan(s) can be found with Federal Student Aid.
Loan Limits
Annual Limits
Grade Level |
Subsidized Annual Maximum Eligibility |
Unsubsidized Annual Minimum Eligibility |
Combined Annual Maximum Eligibility |
| Freshman (Dependent) | $3,500 | $2,000 | $5,500 |
| Sophomore (Dependent) | $4,500 | $2,000 | $6,500 |
| Junior & Senior (Dependent) | $5,500 | $2,000 | $7,500 |
| Freshman (Independent) | $3,500 | $6,000 | $9,500 |
| Sophomore (Independent) | $4,500 | $6,000 | $10,500 |
| Junior & Senior (Independent) | $5,500 | $7,000 | $12,500 |
Lifetime Aggregate Limits
Grade Level |
Subsidized Lifetime Maximum Eligibility |
Unsubsidized Lifetime Minimum Eligibility |
Combined Lifetime Maximum Eligibility |
| Freshman (Dependent) | $23,000 | $8,000 | $31,000 |
| Sophomore (Dependent) | |||
| Junior & Senior (Dependent) | |||
| Freshman (Independent) | $23,000 | $34,500 | $57,500 |
| Sophomore (Independent) | |||
| Junior & Senior (Independent) |
New or First-Time Graduate Student Direct Loan Borrowers |
Annual Limit |
Aggregate Lifetime Limit |
| Before July 1, 2026 | $20,500 | $138,500 including undergraduate loans, excluding Grad PLUS. |
| After July 1, 2026 | $20,500 | $100,000 excluding undergraduate loans, including Grad PLUS. |
**Make sure to note if your program has been reclassified to/from graduate or professional status when referring to this chart.**
*Read more about all the changes impacting Federal Direct Loan borrowing.
New or First-Time Professional Student Direct Loan Borrowers |
Annual Limits |
Aggregate Lifetime Limit |
|
| Before July 1, 2026 | Medical Year 1 | $43,833 | $224,000 including undergraduate loans, excluding Grad PLUS. |
| Medical Year 2, 3, 4 | $47,167 | ||
| Veterinary Year 1, 2, 3 | $40,500 | ||
| Veterinary Year 4 | $47,167 | ||
| Doctorate of Pharmacy | $33,000 | ||
| After July 1, 2026 | All Professional Programs | $50,000 | $200,00 excluding undergraduate loans, including Grad PLUS. |
**Make sure to note if your program has been reclassified to/from graduate or professional status when referring to this chart.**
*Read more about all the changes impacting Federal Direct Loan borrowing.