We’re here to help you understand what loans you’re eligible for—and what each loan entails. Please don’t hesitate to contact us with any questions you have.
Federal Direct Loan Program
Most students who complete the FAFSA are eligible for the Federal Direct Loan Program, which offers low-interest rate loans to students. The lender is the U.S. Department of Education, and all terms and conditions can be reviewed at studentaid.gov.
- The Federal Direct Subsidized Loan is offered to FAFSA filers who demonstrate a certain level of financial need. The U.S. Department of Education pays the interest on the loan while you are enrolled at least half time.
- The Federal Direct Unsubsidized Loan is generally offered to all FAFSA filers regardless of demonstrated need. Interest begins accruing when the loan is disbursed. You have the option of paying the interest as it accrues; otherwise, unpaid interest will be capitalized and added to the principal balance. It’s recommended that you pay interest as it is accrued to keep the principal as low as possible.
Payments for Federal Direct Loans are deferred until six months after you’re no longer enrolled at least half time. This means you’re not required to make payments while enrolled at Holy Cross College. You can, however, choose to make payments while in deferment.
Annual direct loan limits
The maximum amount you may borrow each academic year is based on:
- The number of credit hours accumulated
- Dependency status
- Cumulative borrowing
You’re encouraged to only take on as much debt as necessary. If you’d like to reduce your loan amount(s), you can contact the Office of Financial Aid or make the adjustment on your Holy Cross student portal before accepting the loan(s). After loans are disbursed, you have 14 days to notify the Office of Financial Aid if you would like to reduce or cancel your loan(s).
Dependent students
| Grade level | Subsidized | Total (subsidized & unsubsidized) |
| First Year Students (less than 30 credit hours) | $3,500 | $5,500 |
| Second Year Students (between 30-59 credit hours) | $4,500 | $6,500 |
| Third and Fourth Year Students (over 60 credit hours) | $5,500 | $7,500 |
Independent undergraduates & dependent students whose parents are not approved for the PLUS Loan
| Grade level | Subsidized | Total (subsidized & unsubsidized) |
| First Year Students (less than 30 credit hours) | $3,500 | $9,500 |
| Second Year Students (between 30-59 credit hours) | $4,500 | $10,500 |
| Third and Fourth Year Students (over 60 credit hours) | $5,500 | $12,500 |
Direct loans totals combined debt limit
| Grade level | Subsidized | Total (subsidized & unsubsidized) |
| Dependent Undergraduates | $23,000 | $31,000 |
| Independent Undergraduates & Dependent Students whose parents are not approved for the PLUS loan | $23,000 | $57,500 |
Securing your direct loans
First-time borrowers must complete the Master Promissory Note (MPN) and Entrance Counseling before loans are disbursed. The MPN is a legally binding document in which you agree to repay your loan.
Completion of the MPN requires the names, addresses, and phone numbers of two references and your driver’s license number (if applicable). Entrance Counseling helps you understand your loan responsibilities.
- Visit studentaid.gov
- Log in using your FSA ID and password, which was used to create and sign your FAFSA
- Select “Complete Entrance Counseling” and follow next steps
- Select “Complete Loan Agreement for a Subsidized/Unsubsidized Loan (MPN)” and follow next steps
The U.S. Department of Education will contact Holy Cross after these steps have been completed.