The Annual Federal Direct Loan Limits | Troy University

The Annual Federal Direct Loan Limits:

The Annual Federal Direct Loan Limits:


Grade Level as Determined by the Registrar Credits Dependent loan maximum borrowed allowed Independent Loan maximum borrowed amount
First Year - Freshman 0-29 $5,500 $9,500
Second Year - Sophomore 30-59 $6,500 $10,500
Third Year - Junior 60-89 $7,500 $12,500
Fourth Year or more - Senior 90-180 $7,500 $12,500
Each Year of Graduate or Professional Study N/A N/A $20,500

The total maximum outstanding debt allowed is:

Dependent Undergraduate $31,000 (1)
Independent Undergraduate $57,500 (2)
Graduate or Professional Student(3) $138,500 (4)

1. Of the $31,000 no more than $23,000 may be subsidized loans.

2. Of the $57,500 no more than $23,000 may be subsidized loans.

3. Includes any Federal Direct Loan and/or Federal Supplemental Loans for Students received as an undergraduate.

4. Of the total maximum of $138,500 no more than $65,500 may be subsidized loans. These loan limits are the maximum and must be reduced by other assistance if total cost of education is exceeded. Effective for loans made for periods of enrollment (loan periods) beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Federal Direct Subsidized Loans. The terms and conditions of Direct Subsidized Loans received by any student for loan periods beginning before July 1, 2012, for either graduate or undergraduate study, are not affected by this change. The annual loan limit for graduate and professional students remains unchanged at $20,500.


Per federal regulation, Troy University is required to prorate a dependent or independent undergraduate student's annual Federal Direct loan limits, when they are enrolled for less than a full year and will graduate in the same academic year. This mostly will affect students who will graduate at the end of fall or term 2.

Loan Proration Formula:  

Number of credit hours student enrolled for undergraduate
Number of credit hours in an academic year (24)

x annual Federal Direct loan limit

Students must apply with the FAFSA each year beginning in January for the approaching Fall.

More Federal Direct Loan information is available in the List of Financial Aid Programs Information Page.



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