Federal Direct Student Loans
Beginning with the 2026-2027 school year, students enrolled less than full-time may have their loans adjusted accordingly. Students enrolled less than half-time (6 credits for undergraduate level students, 4.5 credits for graduate and doctoral level students) are not eligible for Federal student loans. For more information, please visit: www.gvsu.edu/financialaid/sor
Federal Direct Subsidized Loan
The government will pay the loan interest during in-school enrollment periods and grace period for the subsidized loan(s). Qualifying for the subsidized loan is determined from the FAFSA. Only undergraduate students qualify for this loan. Click here for more detailed information about federal student loans.
Interest Rates & Processing Fees:
- 6.39% (fixed) interest rate for undergraduate loans disbursed between July 1, 2025 and June 30, 2026
- 6.52% (fixed) interest rate for undergraduate loans disbursed between July 1, 2026 and June 30, 2027
- 1.057% of the amount borrowed is assessed as a processing fee by the federal government for loans disbursed between October 1, 2020 and before October 1, 2027
Federal Direct Unsubsidized Loan
The borrower is responsible for paying all of the interest from the time the loan is disbursed for the unsubsidized loan(s). Paying the interest on this loan while in school will reduce the compounded interest charged over the life of the loan. Click here for more detailed information about federal student loans.
Interest Rates & Processing Fees:
- 6.39% (fixed) interest rate for undergraduate loans disbursed between July 1, 2025 and June 30, 2026
- 6.52% (fixed) interest rate for undergraduate loans disbursed between July 1, 2026 and June 30, 2027
- 7.94% (fixed) interest rate for graduate loans disbursed between July 1, 2025 and June 30, 2026
- 8.07% (fixed) interest rate for graduate loans disbursed between July 1, 2026 and June 30, 2027
- 1.057% of the amount borrowed is assessed as a processing fee by the federal government for loans disbursed between October 1, 2020 and before October 1, 2027
Other Student Loan Options
Student Loan Updates FAQ
What is changing with how Federal Student Loans are awarded?
As of the 2026-2027 academic year, Federal Student Loans are now required to be adjusted based on your total enrolled credits. If you are not enrolled full-time (12 credits as an undergraduate, 9 credits as a graduate), we are required to perform a calculation to determine the amount of loan you are eligible to receive.
Which loans are required to be adjusted?
All federal direct student loans (Subsidized, Unsubsidized, and Grad PLUS) will be evaluated if a student is not enrolled full-time. Parent PLUS and alternative/private student loans are not required to be adjusted.
How do I know the amount of loans I qualify for based on the number of credits I am taking?
The federal regulations require us to use the following calculation:
((# of credits enrolled in for the semester) / (# of credits required for full-time academic year status)) x 100 = the percentage allowed
For example: A freshman enrolled in 9 credits in the fall semester and 12 credits in the winter semester, with maximum eligibility of $5,500 in federal student loans for the year ($2,750 per semester)
(21 credits / 24 credits) x 100 = .88 x 88% of allowed semester loan would be $4,840 for the year ($2,420 per semester)
Will my loan amount be adjusted if I add/drop classes?
Whether your Federal Direct Loan will be adjusted depends on your individual circumstances. If your loan has already disbursed for the semester, it may not be adjusted. If it has not yet disbursed, the loan amount may need to be recalculated based on your updated enrollment.
Changes to your enrollment may also affect future loan disbursements during the same academic year. We will review your remaining loan eligibility to determine whether any adjustments are required.