FEDERAL LOANS

Federal loans are one of the most common ways graduate students finance their education, and for good reason. They offer fixed interest rates, flexible repayment options, and borrower protections that private loans simply don’t match. This page covers everything you need to know about federal loan eligibility, how to accept your loans, and the required steps before your funds can be released. If you have questions at any point, our financial aid team is here to help.

Federal Direct Unsubsidized Loans

Federal Direct Unsubsidized Loans are offered by the U.S. Department of Education to help eligible graduate students cover the cost of their education. Here is what makes them worth understanding:

• Fixed interest rate — your rate is set at the time of disbursement and doesn’t change over the life of the loan.
• No financial need required — unlike some other forms of aid, eligibility for unsubsidized loans is not based on demonstrated financial need.
• Interest accrues during enrollment — because these loans are unsubsidized; interest begins accumulating from the date of disbursement, even while you are still in school. You can choose to pay the interest while enrolled to reduce your total repayment amount or allow it to capitalize, meaning it is added to your principal balance when repayment begins.
• Borrowing limits apply — the amount you can borrow is subject to annual and lifetime limits set by federal law.

 NOTE: The JD program qualifies as a ‘professional degree program’ under the One Big Beautiful Bill Act, meaning JD students may be eligible for the higher professional loan caps. MBLT students are subject to the graduate (non-professional) caps. See the Federal Legislation Updates page for current limits.

Important: New Loan Limits Beginning July 1, 2026

Federal loan limits for graduate students are changing significantly under the One Big Beautiful Bill Act (OBBBA). Beginning with the 2026–2027 academic year, new annual and lifetime caps apply to Direct Unsubsidized Loans for graduate and professional students:

Federal Loan Limits (New Borrowers Beginning July 1, 2026)

Federal Loan Limits (New Borrowers Beginning July 1, 2026)

Additionally, Graduate PLUS Loans are no longer available to new borrowers for terms beginning on or after July 1, 2026. Students who borrowed a federal direct loan before July 1, 2026, while enrolled in their current program may qualify for a legacy provision that allows continued access to previous loan limits for up to three years. Continuous enrollment is required to maintain this provision.

These changes do not affect loans already disbursed for the 2025–2026 academic year.

How to Apply for a Federal Direct Unsubsidized Loan

Step 1 — Complete the FAFSA To be considered for a Direct Unsubsidized Loan, you must first submit a Free Application for Federal Student Aid (FAFSA) at studentaid.gov. Make sure to include The Colleges of Law’s federal school code —  042501 — so your information is sent directly to our financial aid office.

Step 2 — Review your Financial Aid Notification Once your FAFSA has been processed, you will receive a Financial Aid Notification outlining any Direct Unsubsidized Loan eligibility. Review it carefully; you are not required to borrow the full amount offered, and we encourage you to borrow only what you need

Step 3 — Accept your loan If you decide to borrow, log in to the Student Gateway and accept your loan under the Finances section of your account. You can accept the full amount or a reduced amount. The choice is yours.

Step 4 — Complete your Master Promissory Note (MPN) Before your loan funds can be released, you must complete and sign a Master Promissory Note (MPN) at studentaid.gov. The MPN is your formal agreement to repay your federal loans, along with any accrued interest and fees. It also outlines the full terms and conditions of your borrowing. When completing the MPN, make sure to select The Colleges of Law as the school to receive your completion information.

Step 5 — Complete Entrance Counseling First-time federal loan borrowers must also complete Entrance Counseling at studentaid.gov before funds can be disbursed. Entrance Counseling is designed to make sure you fully understand your rights and responsibilities as a borrower. This counseling covers the loan process, how to manage your education expenses, and what repayment will look like after graduation. It typically takes about 30 minutes and only needs to be completed once per institution.

Again, make sure to select The Colleges of Law when completing this step.

A Note on Borrowing Wisely

Federal loans are a valuable tool, but they are still debt, and the decisions you make now will follow you into repayment. A few things worth keeping in mind:

• Borrow only what you need. The amount offered on your Financial Aid Notification is a maximum, not a recommendation. Every dollar you don’t borrow is a dollar you won’t need to repay with interest.
• Interest accrues from day one on unsubsidized loans. Paying even a small amount of interest while you are in school can meaningfully reduce your total repayment cost.
• Understand your repayment options before you borrow. Federal loans offer income-driven repayment plans, deferment, forbearance, and forgiveness programs. Knowing these exist before you graduate makes it easier to plan. Visit our Loan Repayment page for a full overview.

What Comes Next

Once your MPN and Entrance Counseling are complete, your loan funds will be disbursed directly to The Colleges of Law and applied to your student account. If your loan exceeds your tuition and fee balance, any remaining funds will be issued to you within 14 calendar days of the credit appearing on your account, via direct deposit or check.

Questions About Federal Loans?

Whether you are trying to understand your eligibility, figure out how the new loan limits affect your program, or just want to talk through your options before making a decision, our financial aid team is here for exactly that.