Federal and Private Student Loans

The Federal Direct Loan Program provides low-interest loans for students and parents. Students must be enrolled at least half-time (6 credit hours/term) to receive a loan.  An origination/guarantee fee of 1-4% may be assessed prior to each disbursement.The interest rates are determined annually in June. If the student is financially eligible for the loan, the federal government will pay the interest while the student is in school. If they are not financially eligible, the student is responsible for the interest and may pay it while attending school or have it added to the principal for later repayment. Repayment of principal and interest begins six months after the student ceases to be enrolled at least half-time.

Beginning with the 2026–2027 aid year, federal student loan amounts will be reduced based on a student’s enrollment status. This change means that students enrolled less than full-time in a semester and/or academic year will no longer be eligible to borrow the full annual loan limit. Instead, the amount they may borrow will be reduced in proportion to their enrollment status.  This reduction applies to Federal Direct Loans, including Direct Subsidized, Direct Unsubsidized Loans, and Direct Graduate PLUS Loans. Arkansas Tech University considers full-time enrollment for undergraduate students to be 12 hours each semester/24 hours a year, and full-time enrollment for graduate students to be 9 hours each semester/18 hours per year.  

Types of Federal Student Loans

Federal Direct Subsidized Stafford Loan

• Up to $3,500 for the first year of undergraduate study (0-29 hours)
• Up to $4,500 for the second year of undergraduate study (30-59 hours)
• Up to $5,500 per year for subsequent undergraduate years (60+ hours)

Undergraduate students may borrow a maximum of $23,000.

Additional Unsubsidized Stafford Loan

Dependent students may borrow $2,000 per year for four years. Independent students may borrow additional amounts listed. The student is responsible for the interest and may pay it while attending school or have it added to the principal for later repayment.

• Up to $4,000 per year for the first two years of undergraduate study (0-59 hours)
• Up to $5,000 per year thereafter (60+ hours)
• Up to $20,500 per year for graduate study

Dependent students may borrow a maximum of $8,000. Independent students may borrow a maximum of $57,500 for undergraduates and $138,500 for graduates, which includes undergraduate loan amounts.

Federal PLUS Loan

Beginning with the 2026-2027 aid year, parents of dependent undergraduate students may borrow up to $20,000 annually, with a lifetime (aggregate) maximum of $65,000 per student, replacing the previous ability to borrow up to the full cost of attendance.  These limits are per student (not per parent), and the combined borrowing of all parents may not exceed these amounts. Parent PLUS Loans will continue to require a separate application and credit check, with repayment beginning within sixty (60) days after the full disbursement of the loan.  

*There is a grandfather (legacy) provision states that if a student or parent has a Federal Direct Loan disbursed before July 1, 2026, the parent may continue borrowing under the previous loan limits (up to the cost of attendance) for up to three academic years or for the remainder of the student’s expected time to complete their program, whichever comes first.

The Department of Education conducts a credit check on all Direct PLUS loan applications. The interest rates are determined annually in June, and the borrower begins payment within sixty days of the final loan disbursement for the school year.

federal graduate plus loan

The Federal Direct Graduate PLUS Loan program will be discontinued beginning with the 2026–2027 academic year. New Graduate PLUS Loans will no longer be available.

A limited grandfather (legacy) provision may allow certain borrowers who previously received Federal Direct Loans to borrow a Grad PLUS loan under specific conditions. To qualify, a student must have previously received a federal Direct Loan (such as a Direct Subsidized, Direct Unsubsidized, or Graduate PLUS Loan, but excluding Federal Parent Plus) for the same program of study prior to the 2026–2027 aid year and generally must maintain continuous enrollment. If eligible, a student will be allowed to continue receiving Grad PLUS loan funding until the end of their program, or up to 3 years, whichever comes first. 

Students who change programs, transfer, have a break in enrollment, or did not previously borrow a Federal Direct Loan are not eligible for a Grad PLUS loan.

Students approved under this provision must still meet credit requirements and complete all necessary application steps. Eligibility is not automatic and will be reviewed on a case-by-case basis. Students who believe they may qualify should contact the Financial Aid Office for more information.

Go to https://studentaid.gov/plus-app/ to learn more about Parent and/or Graduate PLUS loans.