Remember you need to file your FAFSA before being considered for any of these loan types.
- Subsidized Federal Direct Loan: Offered based on financial need. With this type of loan, the federal government pays the interest while you are enrolled at least half-time.
- Unsubsidized Federal Direct Loan: Does not have a financial need requirement. Unsubsidized loans start accruing interest once the loan has been applied to the student account.
- Direct PLUS Loan: A federal loan for parents of dependent undergraduate students. Credit approval is required.
Also available, for a limited period, to graduate students who enrolled in their program prior to July 1, 2026 and meet eligibility criteria established by the U.S. Department of Education.
All student borrowers enrolled less than full-time for the academic year will have their annual loan limits reduced, in proportion to their enrollment.
Upcoming Changes to Federal Student Aid: What You Need to Know
Borrowing Limits by Student Type
Undergraduate Students
If you're an undergraduate student:
- Dependent student: Up to $5,500 to $7,500 per year in combined Direct Subsidized and Direct Unsubsidized Loans for full-time enrollment. Actual loan limit is based on factors including enrollment status and year in college.
- Independent student: Up to $9,500 to $12,500 per year in combined Direct Subsidized and Direct Unsubsidized Loans for full-time enrollment. Actual loan limit is based on factors including enrollment status and year in college.
- Cumulative undergraduate Federal Direct Subsidized/Unsubsidized Loan borrowing is capped at $31,000 for dependent students and $57,500 for independent students.
- Lifetime federal student loan (Direct and FFEL) borrowing is capped at $257,500
Non-Degree Students
If you're an eligible non-degree student:
- Dependent student: Up to $5,500 per year in combined Direct Subsidized and Direct Unsubsidized Loans for full-time enrollment. Actual loan limit is based on factors including enrollment status and year in college.
- Independent student: Up to $12,500 per year in combined Direct Subsidized and Direct Unsubsidized Loans for full-time enrollment. Actual loan limit is based on factors including enrollment status and year in college.
- Cumulative undergraduate Federal Direct Subsidized/Unsubsidized Loan borrowing is capped at $31,000 for dependent students and $57,500 for independent students
- Lifetime federal student loan (Direct and FFEL) borrowing is capped at $257,500.
Graduate or Professional Students
Beginning, July 1, 2026, Graduate PLUS Loans are no longer available to new borrowers.
Students who borrowed a federal Direct Loan for their current program before July 1, 2026, may continue borrowing under federal legacy provisions. To qualify, you must have been enrolled in your current program as of June 30, 2026, received a Direct Loan for that program before July 1, 2026, remain continuously enrolled in the same program at UVM, and meet other eligibility criteria set by the U.S. Department of Education. Eligibility is determined according to federal guidelines.
At UVM, professional students are students enrolled in the following programs of study:
- Medical Doctor (M.D., Larner College of Medicine)
- Doctor of Physical Therapy (DPT) under temporary court order, subject to change
- Occupational Therapy Doctorate (OTD) under temporary court order, subject to change
- Doctor of Nursing Practice (DNP) under temporary court order, subject to change
If you're a new borrower or no longer eligible for legacy status as a graduate or professional student:
- Graduate students: Up to $20,500 per year in Direct Unsubsidized Loans for full-time enrollment
- Professional students: Up to $50,000 per year in Direct Unsubsidized Loans for full-time enrollment
- Cumulative Federal Direct Unsubsidized Loan borrowing is capped at $100,000 for graduate programs and $200,000 (inclusive of graduate borrowing) for professional programs
- Lifetime federal student loan (Direct and FFEL) borrowing is capped at $257,500 inclusive of Federal Direct/FFEL Subsidized/Unsubsidized and Federal Graduate PLUS Loan borrowing
If you're eligible for legacy status as a graduate or professional student:
Legacy students (graduate or professional) may continue to borrow up to $20,500 per year in Direct Unsubsidized Loans for full-time enrollment up to an aggregate limit of $138,500. Legacy students may also be eligible to apply for a Graduate PLUS Loan.
Parents
Beginning July 1, 2026, new federal borrowing limits apply to Parent PLUS Loans. Parents of students who qualify under federal legacy provisions may continue borrowing under the previous Parent PLUS Loan rules. To qualify, the student must have been enrolled in their current program as of June 30, 2026, received a Direct Loan or a Parent PLUS Loan was borrowed on their behalf for that program before July 1, 2026, and remain continuously enrolled in the same program at UVM. Eligibility is determined according to federal guidelines.
Starting July 1, 2026 if you're a parent of a dependent undergraduate or eligible non-degree student, Parent PLUS Loans will be capped at:
- $20,000 per year
- $65,000 per student lifetime limit
These limits apply regardless of forgiveness, repayment, or discharge status.
Learn More About Each Loan Type
Federal Direct Subsidized Loan (Undergraduate and some Non-Degree Students)
You may be eligible for a Federal Direct Subsidized Loan if you are an undergraduate or eligible non-degree student with demonstrated financial need based on your FAFSA.
- Your eligibility is based on your financial need and federal borrowing limits.
- Interest Benefit: While you're enrolled at least half-time, the federal government generally pays the interest on your subsidized loan.
Loan Details
Interest Rate
- 6.52% for loans first disbursed between July 1, 2026 and June 30, 2027
- 6.39% for loans first disbursed between July 1, 2025 and June 30, 2026
Repayment Begins
- 6 months after you graduate or drop below half-time enrollment
Origination Fee
A federal loan fee is deducted before your loan funds are disbursed, so the amount applied to your student account will be slightly less than the amount you borrow.
- Fee: 1.057% of the loan amount for loans first disbursed between October 1, 2020, and September 30, 2027.
Before You Receive Your Loan
First-time Federal Direct Loan borrowers at UVM must complete:
Federal Direct Unsubsidized Loan (Undergraduate and some Non-Degree Students)
You may be eligible for a Federal Direct Unsubsidized Loan if you are an undergraduate or eligible non-degree student.
- Your eligibility is based on federal borrowing limits
- Financial need not required
Loan Details
Interest Rate
- 6.52% for loans first disbursed between July 1, 2026 and June 30, 2027
- 6.39% for loans first disbursed between July 1, 2025 and June 30, 2026
Repayment Begins
- 6 months after you graduate or drop below half-time enrollment
Origination Fee
A federal loan fee is deducted before your loan funds are disbursed, so the amount applied to your student account will be slightly less than the amount you borrow.
- Fee: 1.057% of the loan amount for loans first disbursed between October 1, 2020 and September 30, 2027
Before You Receive Your Loan
First-time Federal Direct Loan borrowers at UVM must complete:
Dependent students whose parents are not eligible for a PLUS loan may be eligible to receive additional Unsubsidized loan funds.
Federal Direct Unsubsidized Loan (Graduate and Medical Students)
You may be eligible for a Federal Direct Unsubsidized Loan if you are a graduate or medical student.
- Your eligibility is based on federal borrowing limits
- Financial need not required
Loan Details
Interest Rate
- 8.07% for loans first disbursed between July 1, 2026 and June 30, 2027
- 7.94% for loans first disbursed between July 1, 2025 and before June 30, 2026
Repayment Begins
- 6 months after you graduate or drop below half-time enrollment
Origination Fee
A federal loan fee is deducted before your loan funds are disbursed, so the amount applied to your student account will be slightly less than the amount you borrow.
- Fee: 1.057% of the loan amount for loans first disbursed between October 1, 2020 and September 30, 2027
Before You Receive Your Loan
First-time Federal Direct Loan borrowers at UVM must complete:
Federal Direct Graduate PLUS Loan
Beginning, July 1, 2026, Graduate PLUS Loans are no longer available to new borrowers. Students who borrowed a federal Direct Loan for their current program before July 1, 2026, may continue borrowing under federal legacy provisions. To qualify, you must have been enrolled in your current program as of June 30, 2026, received a Direct Loan for that program before July 1, 2026, remain continuously enrolled in the same program at UVM, and meet other eligibility criteria set by the U.S. Department of Education. Eligibility is determined according to federal guidelines.
- Your eligibility is based on federal guidelines and borrowing limits
- Credit approval required (student may apply with co-signer)
- You must complete a Graduate PLUS Loan Credit Check Authorization Form which will be listed as a requirement through your myUVM portal once you accept the loan
Loan Details
Interest Rate
- 9.07% for loans first disbursed between July 1, 2026 and June 30, 2027
- 8.94% for loans first disbursed between July 1, 2025 and June 30, 2026
Repayment Begins
- 6 months after you graduate or drop below half-time enrollment
Origination Fee
A federal loan fee is deducted before your loan funds are disbursed, so the amount applied to your student account will be slightly less than the amount you borrow.
- Fee: 4.228% of the loan amount for loans first disbursed between October 1, 2020 and September 30, 2027
Before You Receive Your Loan
First-time Federal Direct Loan borrowers at UVM must complete:
Federal Direct Parent PLUS Loan
You may be eligible for a Federal Direct Parent PLUS Loan if you are a parent of a dependent undergraduate student or a parent of an eligible non-degree student who is enrolled at least half-time.
- Your eligibility is based on federal guidelines and borrowing limits.
- Credit approval required (parent may apply with a co-signer)
- Each time the loan is borrowed, the parent must Apply for a PLUS Loan
- If you have adverse credit history, you may still have options to obtain the loan. PLUS Credit Counseling is required in these situations.
- For more information on the Federal Direct PLUS loan and the application process, visit Federal Student Aid
- Learn more about how UVM's refund procedure applies to Federal Direct PLUS Loans.
Loan Details
Interest Rate
- 9.07% for loans first disbursed between July 1, 2026 and June 30, 2027
- 8.94% for loans first disbursed between July 1, 2025 and June 30, 2026
Repayment Begins
- Immediately following full disbursement, though parents may request deferment until 6 months after the student’s enrollment falls below half-time
Origination Fee
A federal loan fee is deducted before your loan funds are disbursed, so the amount applied to your students account will be slightly less than the amount you borrow.
- Fee: 4.228% of the loan amount for loans first disbursed between October 1, 2020 and September 30, 2027
Before You Receive Your Loan
First-time Federal Direct Loan borrowers at UVM must complete:
To increase or decrease the parent PLUS loan: log in to Apply for a PLUS Loan and specify change as the reason for submitting the PLUS loan request; entering your new total loan amount for the period you are requesting the change for. (This change must be made during the period in which the PLUS loan applies).
A Reminder About Interest Rates and Loans
Please note that interest rates are subject to change from year to year based on federal regulations. These loans are disbursed directly to the school to be applied to the student’s account. The actual amount of the loan disbursed to the school is the amount accepted, less the origination fee.