Types of direct loans
There are four types of loans:
- Direct subsidised for independent and dependent undergraduate students – the interest is paid by the federal government while in school
- Direct unsubsidised for independent and dependent undergraduate students and graduate students – the interest accrues while in school
- Direct parent PLUS for parents of dependent undergraduates to cover up to the full cost of attendance minus any other aid – subject to the parent's credit rating. The parent can ask to defer repayment during the beneficiary student's in-school status and for an additional six months after the student's graduation
- Direct graduate PLUS for independent graduate students to cover up to the full cost of attendance minus any other aid or funding – subject to the student's credit rating and can be consolidated after graduation. Graduate PLUS loans begin repayment six months after graduation
|
Subsidised loan (undergraduate students only) |
Fixed, maximum value; no interest charged while in school | Origination fee of 1.057% deducted at disbursement |
| Unsubsidised | Fixed, maximum value; interest charged while in school | Origination fee of 1.057% deducted at disbursement |
| PLUS loan | Max value set by London Met University in the calculated cost of attendance; interest charged while in school | Origination fee of 4.228% deducted at disbursement |
How much can I borrow?
- The table below shows the direct loan amounts you can borrow, depending on your degree level and dependent/independent status (for undergraduates)
- The amounts listed may be topped up to the full cost of attendance with a PLUS loan (parent or graduate) which is not an entitlement, but is subject to credit checking and may be declined by the Department of Education (DoE)
- Please note that all loan amounts are subject to a 1.057% origination fee (4.228% for PLUS loans) deducted by the Department of Education at the time of disbursement.
Full rates of interest for each loan type
| Dependent undergraduates | Direct loan subsidised | Direct loan unsubsidised | Total |
| First Year | $3,500.00 | $2,000.00 | $5,500.00 |
| Second Year | $4,500.00 | $2,000.00 | $6,500.00 |
| Third Year | $5,500.00 | $2,000.00 | $7,500.00 |
| Independent undergraduates | Direct loan subsidised | Direct loan unsubsidised | Total |
| First Year | $3,500.00 | $6,000.00 | $9,500.00 |
| Second Year | $4,500.00 | $6,000.00 | $10,500.00 |
| Third Year | $5,500.00 | $7,000.00 | $12,500.00 |
| Graduates | Direct loan subsidised | Direct loan unsubsidised | Total |
| First Year | n/a | $20,500.00 | $20,500.00 |
| Second Year | n/a | $20,500.00 | $20,500.00 |
Current Interest Rates
| Undergraduate Borrowers | Graduate or Professional Borrowers | Graduate or Parent |
|---|---|---|
| 5.50% | 7.05% | 8.05% |
| Direct Subsidised Loans and Direct Unsubsidised Loans | Direct Unsubsidised Loans | Direct Plus Loan |