Federal Student Loans
The William D. Ford Federal Direct Loan Program provides U.S. citizens and permanent residents enrolled at least half-time (4.5+ credits) with federal funding options to support their graduate studies.
- William D. Ford Federal Direct Student Loans
- Important Financial Aid Changes
- Who is eligible?
- Apply for a Federal Student Loan
William D. Ford Federal Direct Student Loans
One of the largest federal aid programs is the William D. Ford Federal Direct Lending Program, funded by the U.S. federal government and supported by the U.S. Treasury.
| Feature | Federal Direct Unsubsidized Loan | Federal Direct Graduate PLUS Loan |
| Status | Active | Eliminated for new borrowers as of July 1, 2026. Phasing out for legacy borrowers as of July 1, 2029. |
| Fixed Interest Rate | 8.07%*
| 9.07%*
|
| Origination Fee | 1.057% | 4.228% |
| Eligibility | Not need-based; no credit check | Requires a credit check |
| In-School Interest | Interest begins to accrue at disbursement. The student may defer the principal, and the interest may be capitalized. | Interest begins to accrue at disbursement. The student may defer the principal, and the interest may be capitalized. |
| Max Borrowing Limit | $10,250 / semester ($20,500 / year) | Up to total Cost of Attendance minus other aid |
| Part-time Students | Prorated if enrolled in fewer than 9 credits. | Prorated if enrolled in fewer than 9 credits. |
*Based on the 10-year Treasury bond yield (4.342%) plus 3.60%. Interest rate not to exceed 9.50%.
** Based on the 10-year Treasury bond yield (4.342%) plus 4.60%. Interest rate not to exceed 10.50%.
Please note: As of July 2012, Federal Direct Subsidized Loans are no longer offered to graduate students. The semester loan limit of $10,250 remains, but it includes only Federal Direct Unsubsidized Loans.
Important Federal Legislation Changes
Congress passed the One Big Beautiful Bill Act (H.R. 1) in July 2025, which introduced several changes to the William D. Ford Federal Direct Lending Program, effective July 1, 2026.
What’s Changed?
Federal Direct Unsubsidized Loan
- Part-Time MBA students enrolled in fewer than 9 credits will receive loans prorated based on their current enrollment.
Federal Direct Graduate PLUS
- Students starting programs on or after July 1, 2026 cannot borrow the Graduate PLUS loan.
- Students with a federal loan (Unsubsidized or Graduate PLUS) disbursed before July 1, 2026, for their current degree program at NYU may continue borrowing under old rules for up to 3 academic years or until degree completion, whichever comes first. (Legacy Borrowers)
- Students continuing their programs who have not borrowed a federal loan (Unsubsidized or Graduate PLUS) cannot borrow the Graduate PLUS loan.
- Part-Time MBA students enrolled in fewer than 9 credits will receive loans prorated based on their current enrollment.
Loan Limits
- Students starting programs on or after July 1, 2026, have an aggregate loan limit of $100,000.
- Students starting programs on or after July 1, 2026, have a lifetime loan limit of $257,500.
Payment Plans
- Any borrower who takes out a new loan or consolidates existing loans on or after July 1, 2026, must repay all their Direct Loans under the Tiered Standard Plan or the Repayment Assistance Plan (RAP).
Please visit the University's Office of Financial Aid website for more information. Students can stay updated on this legislation by visiting StudentAid.gov.