Federal Direct Student Loans
Funds for the Federal Direct Student Loan (FDSL) are provided by the federal government. The net FDSL amount will be disbursed onto your tuition account in late August for fall semester and in late January for spring semester.
All domestic students can borrow a FDSL whether they have applied for financial aid or not. To apply for the FDSL, students must complete the Free Application for Federal Student Aid (FAFSA).
Requirements
You must file a current academic year FAFSA to be eligible to apply for a FDSL. You will need your FAFSA FSA ID in order to complete the loan requirements. If you do not have your ID, you may request one online.
Before loan funds can be disbursed to your tuition account, you must complete the following requirements online:
Once completed, the MPN covers all FDSLs originated on your behalf while you attend Mount Holyoke College. Entrance counseling is required to ensure that you understand your loan obligations. Mount Holyoke will receive electronic confirmation after you have successfully completed both of these requirements.
Subsidized FDSL
The federal government does not charge interest on subsidized loans before repayment begins or during authorized periods of deferment (postponement of repayment). Repayment of principal and interest begins six months after a student graduates or ceases to be enrolled at least half time.
Eligibility for a subsidized FDSL is based on financial need. The school determines financial need for federal aid based on the FAFSA.
Unsubsidized FDSL
The federal government charges interest on the unsubsidized FDSL from the time the loan is disbursed until the loan is paid in full. However, there is an option to defer payment of interest during school. It is important to know that interest is capitalized at repayment, which means it is added to the principal.
Eligibility for an unsubsidized FDSL is not based on financial need. However, a FAFSA must be filed in order to receive an unsubsidized FDSL.
Maximum loan amounts for FDSL
The chart below shows the maximum amounts that can be borrowed for a full academic year. For periods of study that are shorter than an academic year, the maximum amounts may be less. Student Financial Services determines the specific amount that can be borrowed based on federal guidelines.
| All students | All students | Independent students | |
|---|---|---|---|
| Academic level | Annual maximum subsidized or unsubsidized (based on financial need) | Additional unsubsidized eligibility | Additional unsubsidized eligibility |
| First year undergraduate | $3,500 | $2,000 | $4,000 |
| Second year undergraduate | $4,500 | $2,000 | $4,000 |
| Subsequent years undergraduate | $5,500 | $2,000 | $5,000 |
| Graduate or professional student | N/A | $8,500 | $12,000 |
If the loan amount listed in your financial aid package on Financial Aid Online is less than the maximum allowed for your grade level and you wish to increase your FDSL, or if you wish to decrease or decline your existing FDSL, please email your request to Student Financial Services.
Maximum cumulative loan
The maximum cumulative (aggregate) subsidized and unsubsidized loan amount available to a dependent undergraduate student study is $31,000, of which no more than $23,000 can be subsidized.