Please note: The One Big Beautiful Bill Act, enacted in July 2025, made significant changes to the Direct Loan program for fiscal year 2027. While many of these changes are still being finalized through negotiated rulemaking, Harvard University has created a helpful website to track updates as they are released by the Department of Education. Updates will be posted as they become available.
Direct Unsubsidized Loan
The following information is accurate only for 2025–26 and will be updated for 2026–27 when that information becomes available.
- Eligible students may borrow up $20,500 per year, with a lifetime borrowing limit of $138,500 (including any Federal Direct Loans for both undergraduate and graduate education).
- Fixed interest rate (7.94% for loans made in 2025–2026).
- Interest accrual begins immediately and continues to accrue until the loan is repaid; borrowers may elect to make interest payments while enrolled or have the accruing interest added to the outstanding loan balance.
- A loan origination fee will be deducted from the face value of the loan (currently 1.057%).
- The loan is disbursed in two equal parts, typically once per term.
- Repayment begins six months after graduation or dropping below half-time enrollment.
- See the Federal Student Aid website for more details.
Direct Grad Plus Loan
The following information is accurate only for 2025–26 and will be updated for 2026–27 when that information becomes available.
- The annual limit is determined by the student’s cost of attendance, with no aggregate limits.
- Fixed interest rate (8.94% for loans made in 2025–2026).
- *Interest accrual begins immediately and continues to accrue until the loan is repaid; borrowers may elect to make interest payments while enrolled or have the accruing interest added to the outstanding loan balance.
- A loan origination fee will be deducted from the face value of the loan (currently 4.228%).
- The loan is disbursed in two equal parts, typically once per term.
- Repayment begins six months after graduation or dropping below half-time enrollment.
- Applicants must pass a credit check in order to borrow under the Grad PLUS program.
See the Federal Student Aid website for more details.