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.
**On March 20, 2020, Federal Student Aid began providing the following temporary relief on ED-owned federal student loans: suspension of loan payments, stopped collections on defaulted loans, and a 0% interest rate. As of November 22, 2022, these COVID-19 emergency relief measures have been extended until the U.S. Department of Education is permitted to implement the debt relief program or the litigation is resolved. If the debt relief program has not been implemented and the litigation has not been resolved by June 30, 2023, payments will resume 60 days after that. Click here to read more.**
- 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
Interest Rates
Grade Level |
Loan Type |
2021-2022 RateFirst disbursed between 7/1/2021 and 6/30/2022 |
2022-2023 RateFirst disbursed between 7/1/2022 and 6/30/2023 |
| Undergraduates | Sub/Unsub |
3.73% |
4.99% |
| Grads/Professionals | Unsub |
5.28% |
6.54% |
Origination Fee
Loan Type |
2020 FeeFirst disbursed between 10/1/19 and 9/30/20* |
2021-22 FeeFirst disbursed between 10/1/20 and 9/30/22* |
| Sub/Unsub |
1.059% |
1.057% |
*Due to Sequestration – origination fees will continue to adjust for all federal direct loans on October 1 each year.
Annual Federal Loan 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 |
| Graduate | N/A | $20,500 | $20,500 |
| Medical Year 1 | N/A | $43,833 | $43,833 |
| Medical Year 2, 3, 4 | N/A | $47,167 | $47,167 |
| Veterinary Year 1, 2, 3 | N/A | $40,500 | $40,500 |
| Veterinary Year 4 | N/A | $47,167 | $47,167 |
| Doctorate of Pharmacy | N/A | $33,000 | $33,000 |
| Master of Public Health | N/A | $33,000 | $33,000 |
Lifetime Aggregate Federal Loan 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) | |||
| Graduate | $65,000 | $73,000 | $138,500 |
| Medical Year 1 | $65,500 | $158,500 | $224,000 |
| Medical Year 2, 3, 4 | |||
| Veterinary Year 1, 2, 3 | |||
| Veterinary Year 4 | |||
| Doctorate of Pharmacy | |||
| Master of Public Health |
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.
Everything you could want to know about repaying your federal student loan(s) can be found online – Federal Student Aid – Student Loan Repayment .