Federal Student Loans

Federal student loans are funds a student borrows and repays after leaving school. SF participates in the William D. Ford Federal Direct Loan Program, which covers subsidized and unsubsidized loans for undergraduates and PLUS loans for parents of dependent undergraduates.

Subsidized Loans

Available to undergraduates who demonstrate financial need. The federal government pays the interest while the student is enrolled at least half time, during the six-month grace period after leaving school, and during approved deferment.

Unsubsidized Loans

Available to undergraduate and graduate students regardless of need. Interest accrues from the time the loan is disbursed, including while the student is in school. A student can pay the interest as it accrues or let it capitalize.

Most SF undergraduates who take federal loans receive a combination of subsidized and unsubsidized based on financial need and annual limits.

Annual and Aggregate Limits

Federal loan limits are set by grade level and dependency status.

Annual limits (combined Subsidized and Unsubsidized, with maximum Subsidized portion in parentheses):

• Dependent first-year (0-29 credits): $5,500 ($3,500)
• Dependent second-year (30-59 credits): $6,500 ($4,500)
• Dependent third-year and beyond (60+ credits): $7,500 ($5,500)
• Independent first-year: $9,500 ($3,500)
• Independent second-year: $10,500 ($4,500)
• Independent third-year and beyond: $12,500 ($5,500)

Aggregate (lifetime) limits:

• Dependent students: $31,000 ($23,000 Subsidized maximum)
• Independent students: $57,500 ($23,000 Subsidized maximum)

Grade level is based on credits earned toward the program at SF, not time enrolled. A first-year student who earns 30 credits moves to second-year limits the next academic year. A transfer student's incoming credit counts toward grade level once it is evaluated.

Students at SF are typically in the first-year or second-year category unless they transfer in with significant credit. A student who has reached the applicable aggregate limit cannot borrow additional federal loans until some of the existing balance is repaid. The remaining balance is tracked through NSLDS and is visible on StudentAid.gov [WEB LINK: StudentAid.gov].

Half-Time Enrollment Requirement

Federal loans require enrollment in at least 6 eligible credit hours, one of the basic federal aid requirements. A student enrolled in fewer than 6 eligible hours is not eligible for loan disbursement, even if loans were offered earlier in the semester.

Starting with the 2026-27 award year, the annual loan amount is reduced for a student enrolled in fewer than 12 eligible credit hours. The reduction is applied after the last day to drop/add, as a percentage of the maximum loan:

For example, a $1,500 loan becomes $1,125 at 9 hours and $750 at 6 hours. Changing enrollment after the loan posts can change the amount and require the aid offer to be recalculated.

A first-year, first-time borrower's first disbursement is delayed until 30 days after the term begins.

Accepting or Declining Loans

Loans in the aid offer are not automatic. The student accepts, declines, or reduces each loan in the Financial Aid Portal in eSantaFe [WEB LINK: eSantaFe login]. Accepting does not commit the funds, and the student can still reduce or cancel an accepted amount later, subject to timing rules.

Counseling Requirements

Two requirements are completed at StudentAid.gov before loans disburse:

• Entrance Counseling. A short session on borrowing rights and responsibilities, completed before a student's first federal loan disbursement. It does not expire.
• Master Promissory Note (MPN). The legal agreement to repay. One MPN covers a student's federal loans for up to 10 years, but it expires early if no loan disburses under it within 12 months. A student who has borrowed before still signs a new MPN when they don't have an active one.

Both appear as document items in the Financial Aid Portal, and each item links to the exact StudentAid.gov page where it is completed. Completion is reported to SF by the Department of Education and does not post to the student's SF record immediately, so the portal item can stay open for a short time after the step is done.

A student who drops below half-time enrollment, withdraws, graduates, or leaves SF completes Exit Counseling at StudentAid.gov, reached through the document item in the Financial Aid Portal. Exit Counseling covers repayment terms, deferment and forbearance options, consolidation, and loan forgiveness programs. It is a federal requirement and is typically triggered automatically when enrollment status changes.

Repayment

The student is the only borrower on these loans and the only person responsible for repaying them. A parent or spouse who provided information as a FAFSA contributor is not responsible for the student's loans.

Repayment starts after a student leaves school or drops below half time, following a six-month grace period. It is handled by a federal loan servicer assigned by the Department of Education, not by SF. A servicer is the company that manages the borrower's account: billing, payment plans, deferment, and forgiveness. A student finds their assigned servicer by logging in at StudentAid.gov. All questions about payment plans and repayment go to the servicer.

Loans first disbursed on or after July 1, 2026 have two repayment plans: a Standard plan with fixed payments over 10 to 25 years depending on the balance, and the Repayment Assistance Plan, with payments of 1 to 10 percent of income and a $10 minimum. A student who had earlier loans and borrows again on or after that date repays all of them under those two plans. Repayment calculators are at StudentAid.gov [WEB LINK: StudentAid.gov repayment calculator].

Loan Disbursement

Federal loans disburse in at least two installments per academic year, on the standard disbursement schedule. A loan covering fall and spring disburses once in fall and once in spring. A single-semester loan disburses in two payments within the semester.

Return of Title IV

A student who withdraws before completing the semester may have to return part of the loan funds under the federal Return of Title IV calculation.

Parent PLUS Loans

Parents of dependent undergraduates can borrow through Parent PLUS Loans, which has its own application, credit check, and limits that differ from student loans.

Private Loans

Private (alternative) loans come from banks and other private lenders rather than the federal government. They are not part of federal financial aid and have different terms.