Loans
Navigating Student Loans
As part of the Federal Direct Loan Program, Subsidized and Unsubsidized loans are made directly to you through the U.S. Department of Education. These loans are offered to degree-seeking students attending school at least half time. The FAFSA application is required in order to be considered.
The One Big Beautiful Bill Act, signed into law on July 4, 2025, introduced significant changes to federal student aid programs that take effect July 1, 2026. The following information is subject to change as the U.S. Department of Education releases final regulations and guidance. We will continue to update this information as guidance is provided.
Beginning Fall 2026, institutions will be required to prorate annual loan amounts based on the student’s percentage of full-time enrollment. Enrolling (and completing) less than a full-time credit load could impact the amount of federal direct loans a student can borrow. This affects undergraduate and graduate students.
Parent PLUS Loans will be subject to new annual and aggregate borrowing limits per dependent student.
- A parent may borrow:
- $20,000 per year per dependent student
- $65,000 aggregate limit per dependent student
Legacy provision for current students: If certain conditions are met, Parent PLUS borrowers may continue to receive PLUS Loans under current rules for up to three academic years or the remainder of the student’s expected time to credential, whichever is less.
Graduate PLUS Loan program
Beginning July 1, 2026 the Graduate PLUS Loan program will no longer be available to new borrowers.
If you borrowed a Federal Direct Loan prior to July 1, 2026 for the same program, you may remain eligible to borrow a Graduate PLUS Loan for up to three years.
Changes to Graduate Annual and Aggregate Loan Limits
- Annual Loan Limits
- Graduate annual loan limits will remain unchanged at $20,500 per year.
- Professional loan limits - $50,000 per year. UW Eau Claire does not offer any professional programs as defined by the Department of Education*.
- Aggregate Loan Limits
- Graduate program: $100,000
- Professional program: $200,000 UW – Eau Claire does not offer any professional programs as defined by the Department of Education*.
Legacy provision for current students: Borrowers with a Federal Direct Loan made before July 1, 2026, while enrolled in the same program of study, may continue borrowing under current limits for up to three academic years or the remainder of their expected time to credential, whichever is less.
* Pharmacy (Pharm.D.), Dentistry (D.D.S. or D.M.D.), Veterinary Medicine (D.V.M.), Chiropractic (D.C. or D.C.M.), Law (L.L.B. or J.D.), Medicine (M.D.), Optometry (O.D.), Osteopathic Medicine (D.O.), Podiatry (D.P.M., D.P., or Pod.D.), Theology (M.Div., or M.H.L.), and Clinical Psychology (Psy.D. or Ph.D.).
Subsidized Direct loans, available through the federal government, do not accrue interest or require repayment until after the student is no longer enrolled in school on a half time basis. To receive a subsidized loan, the student must complete the Free Application for Federal Student Aid (FAFSA), be an undergraduate, degree seeking student, and be eligible for need based aid.
The interest rate on your Direct Subsidized Loan is fixed, and you will not be charged interest while you are enrolled in school at least half time, during your 6-month grace period, or during deferments. You will begin repaying your loan six months after you graduate, leave school, or drop below half-time. The monthly payment and actual length of the repayment period depends on the amount of the loan you owe, your interest rate, and the loan repayment option you chose. While there is no interest on the Direct Subsidized Loan while you are in school, there is an origination fee.
There are limits to the amount of Subsidized Direct Loan you may borrow annually depending on your grade level, as well as a cumulative undergraduate borrowing amount. First year students may receive up to $3,500 annually, students with a Sophomore standing receive up to $4,500 annually, and students with a Junior or higher status receive up to $5,500 annually. The cumulative limit undergraduates may receive is $23,000.
Unsubsidized or interest bearing loans do not require financial need (although most require that a FAFSA be filed). Unlike subsidized loans, unsubsidized loans accrue interest while the student is in school. Interest begins on the day the Unsubsidized Direct Loan disburses to a student's account. Payments of principal may be delayed until the student is no longer enrolled in school on a half time basis. Undergraduate and Graduate degree seeking students are eligible for Unsubsidized Direct Loans.
Interest begins to accumulate on an Unsubsidized Direct Loan once the loan is disbursed, even while you are in school. The interest begins the day the loan is paid to you until the day the loan is repaid in full. The interest rate is a fixed rate and will not change. Your Loan servicer will send you a statement of accrued interest periodically. You may choose to pay the accumulating interest while you are in school, or have the interest capitalized. Capitalizing means adding unpaid, accumulated interest to the principal balance of the loan. Capitalization increases the total cost of your loan, so if you choose to let your interest be capitalized, you will repay more money in total than if you pay it while you are in school. In addition to interest, there is also an origination fee of 1.057% deducted from your loan when it is disbursed.
There are limits to the amount you may borrow annually depending on your grade level, as well as a cumulative undergraduate borrowing amount.
Dependent undergraduate students can borrow:
- Freshman – $5,500 (up to $3,500 may be subsidized);
- Sophomore – $6,500 (up to $4,500 may be Subsidized);
- Junior+ – $7,500 (up to $5,500 may be Subsidized);
- Aggregate/Cumulative – $31,000 (up to $23,000 may be Subsidized).
Independent undergraduate students can borrow:
- Freshman – $9,500 (up to $3,500 may be Subsidized);
- Sophomore – $10,500 (up to $4,500 may be Subsidized);
- Junior+ – $12,500 (up to $5,500 may be Subsidized);
- Aggregate/Cumulative – $57,500 (up to $23,000 may be Subsidized).
Graduate degree seeking students can borrow:
- Up to $20,500 annually
- Aggregate/Cumulative - $138,500 - this includes loans borrowed at the undergraduate level
In order to receive your first Federal Direct Loan, federal law requires that you complete Loan Entrance Counseling to ensure that you have a full understanding of the rights and responsibilities you will incur before accepting a loan. After accepting your Federal Direct Loan we will email you instructions to complete Loan Entrance Counseling.
Additionally, first time Federal Direct Loan borrowers must sign a Master Promissory Note (MPN) online in order to receive a loan. The Master Promissory Note is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s). After accepting your Federal Direct Loan we will email you instructions to complete the MPN.
Federal law requires that borrowers of Federal Direct Ford, Stafford, or SLS student loans receive Loan Exit Counseling information prior to graduation, dropping below half time enrollment, or leaving school. Students must complete this requirement on the Federal Student Aid web site.