Federal Direct Loans

Federal Direct Loans are low-interest loans provided by the U.S. Department of Education to help students and families pay for college. Loan funds are borrowed, they must be repaid after you leave school or drop below half-time enrollment.

The Federal Direct Loan Program includes three types of loans: Subsidized Loans, Unsubsidized Loans, and PLUS Loans, each with different eligibility requirements and benefits designed to help cover the cost of attending college.

Subsidized Loans

Federal Subsidized Loans are available to undergraduate students who demonstrate financial need based on information from the FAFSA. The U.S. Department of Education pays the interest on your loan while you are enrolled at least half-time, during your six-month grace period after leaving school, and during eligible periods of deferment.

Note: For Direct Subsidized Loans first disbursed between July 1, 2012, and July 1, 2014, the borrower was responsible for interest that accrued during the six-month grace period. Any unpaid interest may have been added to the loan’s principal balance.

See Federal Student Aid for current interest rates and fees.

Unsubsidized Loans

Direct Unsubsidized Loans are available to undergraduate and graduate students, and you do not need to demonstrate financial need to qualify. Unsubsidized Loans allow you to borrow additional funds beyond any Direct Subsidized Loan for which you may be eligible.

You are responsible for paying the interest on an Unsubsidized Loan from the time the loan is disbursed, including while you are enrolled in school and during grace, deferment, and forbearance periods. If you choose not to pay the interest as it accrues, the unpaid interest may be capitalized and added to your principal balance.

Note: If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).

See Federal Student Aid for current interest rates and fees.

PLUS Loan

Parent PLUS Loans

Starting July 1, 2026, Parent PLUS Loans will have new annual and lifetime caps for new borrowers, which allow parents (combined) to borrow up to the full cost of attendance with no lifetime cap:

Annual limit: $20,000 per year per dependent student
Lifetime limit: $65,000 per dependent student (without regard to amounts forgiven, repaid, or discharged)
No borrower may exceed $257,500 in total federal loans across all levels of study combined ( undergraduate, graduate, and professional).

These limits apply per dependent student. If a family has multiple dependent students enrolled in college, each student is subject to their own separate $65,000 borrowing cap. The limit applies collectively to all parent borrowers for that student and is not a separate limit for each parent.

A few other things to know:

Interest accrues on Parent PLUS Loans even while the student is in school
Parents must pass a credit check to borrow. If denied, the dependent student may be eligible for additional Unsubsidized Loan funds
Repayment is the parent’s responsibility and cannot be transferred to the student
Parents borrowing on or after July 1, 2026 will be subject to the new repayment plan options only (Tiered Standard Repayment or the Repayment Assistance Plan (RAP))

Please note: If your parent received at least one Parent PLUS disbursement before July 1, 2026 while you were enrolled in your current program, they may qualify for legacy provisions. See the Legacy Provisions section below for details.

Graduate PLUS Loans

Starting July 1, 2026, Graduate PLUS Loans are no longer available to new borrowers as. You may still qualify under the legacy provision* if both of the following are true:

You received a federal Direct Loan disbursement before July 1, 2026, while enrolled in your current graduate program.
You remain continuously enrolled in that same program at Queens College.

Eligibility lasts up to three academic years or until you complete the program, whichever comes first. Changing programs, withdrawing, or a lapse in enrollment ends legacy eligibility.

Requesting a PLUS Loan

To request a PLUS Loan application, contact the Direct Loans Team at directloans@qc.cuny.edu.

All PLUS borrowers must sign a PLUS Master Promissory Note, which is your agreement to the loan terms.
If you qualify for a Graduate PLUS Loan under the legacy provision* and have never received one before, complete Entrance Counseling.

Starting July 1, 2026, new annual and lifetime borrowing caps are being introduced, Graduate PLUS Loans are being eliminated for new borrowers, and loan amounts will be adjusted based on enrollment. Find more information about the One Big Beautiful Act here.

federal Loan borrowing limits

The amount of federal student loans you may receive depends on your grade level, enrollment status, and remaining federal loan eligibility. Beginning with the 26-27 academic year, federal loan amounts are prorated for students enrolled less than full-time.

This means that if you are enrolled in fewer than 12 credits, the amount you may borrow can be reduced based on your enrollment level. Your loan eligibility may also change if your enrollment changes after your loan is processed or disbursed at any point during the academic year.

For federal aid purposes, enrollment status is defined as follows:

Full-Time: 12+ credits per semester
Half-Time: 6–11 credits per semester (subject to loan proration)
Less than Half-Time: 1–5 credits per semester (not eligible for a federal loan)

The chart below outlines the maximum annual and total loan amounts you may be eligible to borrow if you are enrolled full-time for the academic year. Your actual eligibility may be lower based on your enrollment, financial aid, remaining federal loan eligibility, and other eligibility requirements.

The annual borrowing limit is the maximum amount you may be eligible to receive during the academic year, including Summer, Fall, and Spring.

Dependent Students

(Annual limit is combination of Subsidized and/or Unsubsidized)

Year	Max Subsidized You May Request	Annual Borrowing Limit
Freshman	$3,500	$5,500
Sophomore	$4,500	$6,500
Junior/Senior	$5,500	$7,500
Graduate	–	–

Independent Students

(Annual limit is combination of Subsidized and/or Unsubsidized)

Year	Max Subsidized You May Request	Annual Borrowing Limit
Freshman	$3,500	$9,500
Sophomore	$4,500	$10,500
Junior/Senior	$5,500	$12,500
Graduate	–	$20,500

Maximum lifetime loan limit

If you reach your lifetime (aggregate) loan limit, you cannot receive more federal loans. However, if you repay part of your loan balance and go below the limit, you may become eligible to borrow again up to the remaining amount allowed.

Dependency Status	Maximum Subsidized and Unsubsidized	Maximum Subsidized
Dependent Undergraduate	$31,000	$23,000
Independent Undergraduate	$57,500	$23,000
Graduate & Professional	$100,000	–
All federal student loans combined (undergraduate + graduate, excluding Parent PLUS)	$257,500	–

APPLYING FOR A FEDERAL LOAN

Complete the FAFSA application for the academic year you are requesting the loan.
If you are a first-time Direct Loan borrower at Queens College, you must complete Entrance Counseling and the Master Promissory Note (MPN).

Once the above steps are complete, submit a Direct Loan Request on your CUNYfirst Student Center:

Log in to CUNYfirst and go to Student Center → Financial Aid.
Click Direct Loan Processing Form on the left.
Read all 12 questions carefully.
Complete and submit the form.

When completing your Direct Loan Request:

Make sure you are completing the loan application for Queens College and for the correct academic year. The college and academic year is displayed in the top left-hand corner of the application.
If you plan to borrow a loan for one semester, only enter the credits for that specific semester.
If you plan to borrow for multiple semesters, enter the number of credits for each semester you intend to receive the loan. The loan amount you request will be split evenly across the semesters you select.

Important Notes:

When requesting out a loan amount, keep in mind there are fees that are taken out of the loan.
If you accept a loan award on Cunyfirst, you must complete the Entrance Counseling and MPN, if you are a first time borrower.
If you accept a loan award on Cunyfirst, it will be split between Fall + Spring.

Under the new federal changes effective July 1, 2026, if you plan to attend part-time at any point during the academic year, your loan may be prorated based on your enrollment. This means the amount you receive may be less than the amount you requested.

Eligibility Requirements

The following requirements must be met in order for your federal loan to disburse:

A valid FAFSA for the academic year you are requesting the loan.
Be a U.S Citizen or eligible noncitizen.
Completion of all CUNYfirst “To Do” items. If you have a “Verify My FAFSA” item, it must be completed and processed.
Completion of Entrance Counseling and Master Promissory Note (MPN).
Enrollment in an eligible degree or certificate program.
Enrollment in at least 6 credits (half-time).
Must be meeting Satisfactory Academic Progress (SAP).
Not be in default on any existing federal student loan or owe a refund on a federal grant.
Must have borrowing eligibility remaining.

Please note: changes in enrollment after a loan has been disbursed, such as dropping below full-time status, may result in an adjustment to your loan eligibility for the affected semester and any remaining semesters within the academic year.

If you request a loan for the academic year and your enrollment in a previous semester drops below half-time or you no longer meet eligibility requirements, your loan for the next semester will not be processed. You must contact the Loans Team to have the loan reinstated at directloans@qc.cuny.edu.

exit counseling and repayment

Exit Counseling

Exit counseling provides important information to prepare you to begin repaying your federal student loan(s).

If you have received a subsidized, unsubsidized or PLUS loan under the Direct Loan Program or the Federal Family Education Loan Program, you must complete exit counseling each time you:

Graduate
Leave school
Drop below half-time enrollment

Exit Loan Counseling is completed online at Federal Student Aid. The entire counseling process must be completed in a single session. Exit counseling may take up to 20 minutes or more to complete. Once you finish, any related hold on your account will automatically be released within 1–2 weeks.

To complete Exit Counseling you will need:

A verified FSA ID
Details on your income, financial aid, and living expenses
Names, addresses, e-mail addresses and phone numbers of two references, preferably at least one next of kin (close relative).

For a complete and detailed history of a student’s loan debt, as well as federal grants received, a student can use their FSA ID to log in to the Studentaid.gov website.

Repayment

Repayment is the process of paying back the money you borrowed through federal student loans. After you graduate, leave school, or drop below half-time enrollment, your loans generally enter repayment according to the terms of your loan and the repayment plan you select. Your loan servicer will provide information about when your payments begin, your monthly payment amount, and your repayment options.

Borrower Grace Period:

Direct Subsidized and Direct Unsubsidized Loans generally have a six-month grace period after you graduate, leave school, or drop below half-time enrollment before you are required to begin making payments.
PLUS Loans have different repayment rules. Parent PLUS borrowers may request a deferment while their student is enrolled at least half-time. Graduate PLUS borrowers may also qualify for deferment while enrolled at least half-time.

Loan Servicer Information:

Sign in to Federal Student Aid’s dashboard to view your federal loans, balances, repayment plan, and loan servicer.
Still not sure who your loan servicer is? You can find that information here.

Repayment Plans:

Your available repayment plans depend on your loan type and when your loans were first disbursed.
Beginning July 1, 2026, the Repayment Assistance Plan (RAP) and Tiered Standard Plan are available under the new federal student loan repayment rules.
For more information, visit Federal Student Aid’s Repayment page.

Loan Consolidation

A Direct Consolidation Loan combines eligible federal student loans into a single loan with one monthly payment.
Consolidation can change your repayment options and other loan terms, so review the potential effects before applying.
For more information, visit Federal Student Aid’s Loan Consolidation page.

Postponing Loan Payments:

In certain situations, you may be able to temporarily postpone your federal student loan payments through a deferment or forbearance. The requirements and interest treatment depend on the type of postponement and the type of loan. Interest generally does not accrue on subsidized loans during eligible deferment periods, while interest continues to accrue on unsubsidized loans and during forbearance.
If you are enrolled at least half-time, you may qualify for an in-school deferment. To request an in-school deferment, you will need to submit a “Deferment Form” to the Registrar’s Office so they can verify your enrollment.
For more information, visit Federal Student Aid’s Temporary Relief page.

Federal Perkins Loan Program

The Federal Perkins Loan Program provided low-interest loans to help students in need to finance the costs of postsecondary education at Queens College. The Perkins Loan Program ended September 30, 2017 and is no longer available.

Current Federal Perkins Loan borrowers can contact the loan servicer, ECSI, to complete your Exit Interview, payment options, deferments, cancellations, and details regarding your Federal Perkins Loan account.

ECSI

Phone: 1-888-549-3274

Website: https://home.ecsi.net/

School Code – F5

CONTACT THE LOANS TEAM

Have specific questions about your loans? Contact our Direct Loans team for assistance. We can help answer your questions and guide you through your loan options and process.

directloans@qc.cuny.edu