Direct Subsidized Loan - The University of Tulsa

Direct Subsidized Loan

A FAFSA must be filed before TU can determine eligibility for Direct Loans. To qualify for a Direct Subsidized Loan, a student must exhibit financial need as determined by their FAFSA. This loan can be used for educationally-related costs, such as, tuition, fees, housing/meals and books.  The government pays the interest on the loan while you are enrolled in school at least half-time.


  • Must file the FAFSA
  • Based on financial need
  • Must be at least half-time (6+ hours each semester)
  • Eligibility must be determined and the loan originated before the end of the academic period for which the loan is being requested.
  • Prior to receiving the first loan disbursement, borrowers are required to electronically accept the award(s) in Self Service.  Upon accepting the loans, the borrower must also complete a Master Promissory Note and entrance counseling at  Please see below for more information.

Students exhibiting no financial need, or no remaining need after other aid sources, may qualify to borrow a Direct Unsubsidized Loan.

The Department of Education sets aggregate loan limits for students.

Aggregate Loan Limits:

  • Dependent, undergraduate students:  $31,000
    • (not to exceed $23,000 in Direct Subsidized Loan Funds)
  • Independent, undergraduate students:  $57,500
    • (not to exceed $23,000 in Direct Subsidized Loan Funds)
  • Graduate / Law Students:  $138,500
    • (not to exceed $65,500 in Direct Subsidized Loan Funds)

As of 7/1/13, a new provision was added to the Direct Loan requirements that limit a first-time borrower’s eligibility for Direct Subsidized Loans to a period not to exceed 150% of the length of the borrower’s educational program. Only first-time borrowers on or after 7/1/13 are subject to the new provision.

Interest Rates / Fees:

The current interest rate for Direct Subsidized/Unsubsidized Loans is determined each June for new loans being processed for the upcoming award year, which runs from July 1 to the following June 30. The fixed interest rate will be for the life of the loan.

  • The federal government pays the interest on a Direct Subsidized Loan while a student attends school at least half-time, during the first six months of repayment once a student graduates or drops below half time enrollment (referred to as a grace period), and during a deferment period.

The government will deduct an origination (processing) fee from each Direct Subsidized/Unsubsidized Loan disbursement. Refer to for the actual interest rate and origination fee for your Direct Subsidized/Unsubsidized Loans.

First-time Borrower?

Prior to receiving the first loan disbursement, borrowers are required to electronically accept the award(s) in Self Service  Upon accepting loans, the first-time borrower must also complete the following:

  • Entrance Counseling:  Complete a one-time session at detailing the terms and conditions of the loan(s) and the rights and responsibilities of the borrower.
  • Master Promissory Note (MPN):  Sign the MPN at
    • The MPN is used for multiple loans for the same borrower.
    • The MPN is valid for ten years.
    • The MPN is retained and updated by the U.S. Department of Education throughout the student’s education at TU.

Both the entrance counseling and the Master Promissory Note (MPN) must be completed before funds are disbursed to the student’s Bursar account at TU.

  • Loans are made in two equal disbursements for a two-semester loan. At least one-half of the loan period must elapse before the second disbursement can be released.
  • Direct Subsidized/Unsubsidized Loans credit to the student’s Bursar account no earlier than the first day of class each semester. A disbursement funds letter will be emailed to the student’s TU email address when funds credit.

A student has the right to cancel all or any portion of the loan within 14 days of the loan crediting their student Bursar account. It is the student’s responsibility to notify Student Financial Services, in writing, if they wish to reduce or cancel their student loan(s).

Repayment begins six months after the student ceases to be enrolled at least half–time. Exit counseling is required upon leaving the university. Refer to for repayment plans.

2022-2023 Important Loan Information

2023-2024 Important Loan Information

All federal loans a student applies for will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by guarantee agencies, lenders, loan servicers, and schools determined to be authorized users of the data system.

To find helpful information regarding the items below, please search

  • Federal Student Aid Programs
  • Consolidate My Loans
  • Public Service Loan Forgiveness
  • Repayment Plans & Calculators