University of Wisconsin–Madison

Direct Subsidized/Unsubsidized Loans

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 at www.studentloans.gov.

  • Based on financial need
  • The federal government pays the interest that accrues while the borrower is in an in-school, grace, or deferment status
  • Awarded up to 150% of the length of your program
  • ONLY available to undergraduates
  • NOT based on financial need
  • You are responsible for paying all interest that begins accruing at the time of disbursement
  • Payment of interest while you’re in school, although not required, is encouraged as it will reduce your total repayment amount
  • Available to undergraduates, graduate, and professional students

Interest Rates

Grade Level
Loan Type
2015-16 Rate

First disbursed between 7/1/2015 and 6/30/2016

2016-17 Rate

First disbursed between 7/1/2016 and 6/30/2017

Undergraduates Sub/Unsub

4.29%

3.76%

Grads/Professionals Unsub

5.84%

5.31%

Origination Fee

Loan Type
2016 Fee

First disbursed between 10/1/2015 and 9/30/2016

2017 Fee

First disbursed between 10/1/16 and 9/30/17*

Sub/Unsub

1.068%

1.069%

*Due to Sequestration – origination fees will continue to increase 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.

Your loan servicer, determined by the U.S. Department of Education, will provide you with a loan repayment schedule that states:

  • When your first payment is due
  • Number and frequency of payments
  • Amount of each payment

Everything you could want to know about repaying your federal student loan(s) can be found online – Federal Student Aid website.