Federal Direct Student Loans

The U.S. Department of Education offers subsidized and unsubsidized loans at low interest rates through the William D. Ford Federal Direct Loan Program.

  • Subsidized Direct Loan

    The Subsidized Direct Loan is a need-based loan program. The federal government pays the interest on the loan while you are enrolled at least half-time. Here are some quick facts:

    • Fixed interest rate of 3.73% for the 2021-2022 academic year
    • Origination fee of 1.057% for loans paid before October 1, 2022
    • No interest accrual while enrolled at least half-time
    • Six-month grace period

    To be considered for this loan, you must submit a FAFSA and demonstrate federal financial need. Most Pitzer students who apply for financial aid will automatically be considered for this loan program. If you have questions about your subsidized loan eligibility, please contact our office.

  • Unsubsidized Direct Loan

    The Unsubsidized Direct Loan is a non-need-based loan and is similar to the Subsidized Loan program, except that that interest accrual is immediate. Here are some quick facts:

    • Fixed interest rate of 3.73% for the 2021-2022 academic year
    • Origination fee of 1.057% for loans paid before October 1, 2022
    • Interest accrual is immediate (as soon as the loan is disbursed)
    • Six-month grace period

    To be considered for this loan, you must submit a FAFSA. Pitzer does not automatically include this loan when determining aid eligibility. Any student interested in borrowing unsubsidized loan funds, must request the loan by completing Section 3 of the Self-Help Agreement.

Apply for a Federal Direct Loan

Submit these documents to apply for a Direct Loan or have your existing Direct Loan disbursed (paid) to your Student Account.

After we receive all required documents, your loan funds will be disbursed in two equal installments, normally at the beginning of each semester. You must be enrolled at least half-time when the loan is disbursed to be eligible for these funds. You will receive an electronic confirmation once these funds have been paid to your Student Account.

  • First-Time Borrowers

    To have your Federal Direct Loan funds paid to your Student Account, please complete the following before the start of the semester:

    1. Submit a Free Application for Federal Student Aid (FAFSA) online
    2. Complete a Master Promissory Note (online) on the Federal Student Aid website. Log-in using your FSA ID and password and click “Complete Loan Agreement (Master Promissory Note)” link under the “In School” tab.
    3. Complete Entrance Counseling (online) on the Federal Student Aid website. Log-in using your FSA ID and password and click “Complete Entrance Counseling” link under the “In School” tab.
    4. Complete the Self-Help Agreement. Please read and initial where required.

    It is important that you (the student), and not the parent, complete these requirements using your FSA ID/password.

Loan Limits

  • Annual Loan Limits

    Dependent Students

    School-Year Maximum Subsidized

     

    Maximum Unsubsidized

    (for students who are eligible for a subsidized loan)

    Maximum Unsubsidized

    (for students not eligible for a subsidized loan)

    First-year $3,500 $2,000 $5,500
    Second-year $4,500 $2,000 $6,500
    Third-year $5,500 $2,000 $7,500
    Fourth-year+ $5,500 $2,000 $7,500

    Independent Students & Dependent Students whose parents are ineligible for a PLUS Loan

    School-Year Maximum Subsidized

     

    Maximum Unsubsidized

    (for students who are eligible for a subsidized loan)

    Maximum Unsubsidized

    (for students not eligible for a subsidized loan)

    First-year $3,500 $6,000 $9,500
    Second-year $4,500 $6,000 $10,500
    Third-year $5,500 $7,000 $12,500
    Fourth-year+ $5,500 $7,000 $12,500
  • Aggregate (life-time) Loan Limits
    Subsidized Unsubsidized Total
    Dependent Students $23,000 $8,000 $31,000
    Dependent Students whose parents are ineligible for a PLUS Loan $23,000 $34,500 $57,500
    Independent Students $23,000 $34,500 $57,500

Repayment Options

Repayment on Federal Direct Loans begins six months after you graduate from Pitzer or cease to be enrolled at least half-time. Generally, you have 10 to 25 years to repay your loans, depending on the repayment plan that you choose. The federal government offers several repayment plans. For more information on these repayment plans, visit on the Federal Student Aid website.