Office of Scholarships & Financial Aid

Subsidized Direct Student Loans are federally guaranteed loans based on financial need. This loan is only offered to undergraduate students. Interest does not accrue on the loan while you are in school at least half time or during any future deferment periods. Students are not required to start making payments on this loan until six months after they graduate or drop below half-time. This is known as the "grace period."

Overview

• Direct Subsidized Loans are available to undergraduate students with financial need. Need is determined by taking the cost of attendance and subtracting your Student Aid Index (SAI) and your awarded financial aid (excluding the PLUS loan).
• Your school determines the amount you can borrow and the amount may not exceed your financial need.
• The U.S. Department of Education pays the interest on a Direct Subsidized Loan:
  • while you’re in school at least half-time
  • for the first six months after you leave school (referred to as a grace period)
  • during a period of deferment (a postponement of loan payments).
• Interest rates are set by the Department of Education each year on or near July and will be updated accordingly at that time on our website.

Comprehensive information on these loans is available from the U.S. Department of Education.

Learn More About Loans

Unsubsidized Loans are federally guaranteed loans that are not based on financial need. Interest accrues from the time the loan is distributed to Georgia Tech.

Students are not required to start making payments on this loan until six months after they graduate or drop below half-time. This is known as the “grace period.”

Comprehensive information on these loans is available from the U.S. Department of Education.

Learn More About Loans

A Parent PLUS Loan is an education loan specifically for parents (biological or adoptive) of dependent undergraduate students. Parents can borrow up to the cost of attendance minus any other financial aid the student is receiving to a maximum of $20,000 per year. The lifetime maximum for the Parent PLUS Loan is $65,000 per dependent student.

Applying for a Parent PLUS Loan

Parents must complete this application; it cannot be completed by a student. Be sure that all information is entered correctly, as incorrect information could delay the processing of the application.

Interest rates are set by the Department of Education each year on or near July and will be updated accordingly at that time on our website.

Repayment of principal and interest begins 60 days after the loan is fully disbursed or parents have the option to defer payments while their student is in school. However, any interest that accrues from the date of disbursement is added to the outstanding loan balance through a process called capitalization.

Apply for a Parent PLUS Loan

Academic Year	Dependent Students (except students whose parents are unable to obtain PLUS loans)	Independent Students (and dependent students whose parents are unable to obtain PLUS loans.
First-Year Undergraduate Annual Loan Limit	$5,500 – No more than $3,500 of this amount may be in subsidized loans.	$9,500 – No more than $3,500 of this amount may be in subsidized loans.
Second-Year Undergraduate Annual Loan Limit	$6,500 – No more than $4,500 of this amount may be in subsidized loans.	$10,500 – No more than $4,500 of this amount may be in subsidized loans.
Third-Year-and-Beyond Undergraduate Annual Loan Limit	$7,500 per year – No more than $5,500 of this amount may be in subsidized loans.	$12,500 – No more than $5,500 of this amount may be in subsidized loans.
Graduate or Professional Student Annual Loan Limit	Not applicable	$20,500 (unsubsidized loans only)
Subsidized and Unsubsidized Aggregate Loan Limit	$31,000 – No more than $23,000 of this amount may be in subsidized loans.	$57,500 for undergraduates – No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students – No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.

Beginning July 1, 2026, federal Direct Loan disbursements for students enrolled in fewer than 12 credit hours will be prorated based on enrollment each term. As a result, loan amounts may vary depending on the number of credit hours in which a student is enrolled.

What This Means for Students

• Full-time students enrolled in 12 or more credit hours are eligible for the full annual federal Direct Loan amount, subject to other eligibility requirements.

• Students enrolled less than full-time may receive a reduced federal Direct Loan amount based on their registered credit hours.

• Dropping, withdrawing from, or not attending courses may reduce loan eligibility and could impact future financial aid awards.

Important Enrollment Requirements

Half-Time Minimum Requirement

To be eligible for federal loans, students must be enrolled in at least:

• 6 credit hours applicable to their degree program during the term.

Proration of Loan Eligibility

Students enrolled less than full-time (fewer than 12 credit hours) will have their maximum annual federal Direct Loan eligibility prorated based on their enrollment. The amount offered will be adjusted according to the number of credit hours for which the student is registered.

Before You Change Your Schedule

Students considering withdrawing from a course should consult with their academic advisor and the Office of Scholarships and Financial Aid before making enrollment changes, as doing so may affect loan eligibility, future aid offers, and satisfactory academic progress.