Based on financial need as determined by the FAFSA.
The annual loan amount is based on the grade level of the student:
Maximum Annual Loan Limits Chart (Aggregate Loan Limits) - Federal Direct Subsidized/ Unsubsidized Loans
| Year | Dependent | Independent | Graduate |
|---|
| First Year |
$3,500 plus $2,000 in unsubsidized loans |
$9,500 - No more than $3,500 of this amount may be in subsidized loans. |
$20,500 - Unsubsidized |
| Second Year |
$4,500 plus $2,000 in unsubsidized loans |
$10,500 - No more than $4,500 of this amount may be in subsidized loans. |
| Third and Beyond (each year) |
$5,500 plus $2,000 in unsubsidized loans |
$12,500 - No more than $5,500 of this amount may be in subsidized loans. |
| Maximum Total Debt from Federal Direct Loans when you graduate (aggregate loan limits) |
$31,000 (maximum $23,000 subsidized) |
$57,500 - No more than $23,000 of this amount may be in subsidized loans. |
$138,500 - No more than $65,500 of this amount may be in subsidized loans.
The graduate debt limit includes Federal Direct Loans received for undergraduate study.
|
Not available for graduate level students
Loans with a first disbursement between 7-1-25 and 6-30-26 will have a fixed interest rate of 6.39%. Interest will begin to accrue six months after the student is no longer enrolled at least half-time status. Repayment begins 6 months after the borrower is no longer enrolled at least half-time. The loan has a 10-year repayment period.
Federal Direct Subsidized Loans will have a 1.057% Origination fee deducted from the loan disbursement amount.
Loans with a first disbursement between 7-1-25 and 6-30-26 will have a fixed interest rate of 6.39% for undergraduate and 7.94% for graduate students. Interest will begin to accrue when the loan is disbursed. Repayment begins 6 months after the borrower is no longer enrolled at least half-time. The loan has a 10-year repayment period.
Federal Direct Unsubsidized Loans will have a 1.057% Origination fee deducted from the loan disbursement amount.
The Federal Direct Loan Master Promissory Note (MPN) is the only time a student is required to complete a promissory note for the Federal Direct Loan. The MPN can be used for up to 10 years of borrowing for educational expenses. If no loan is funded within 12 months of the original borrower sign date, a new MPN will be required.
You can complete a Federal Direct Loan MPN online at https://studentaid.gov/app/launchMpn.action?mpnType=subUnsubMpn.
Use a repayment calculator for the Federal Direct Subsidized and Unsubsidized Loans.
A completed FAFSA is required. This loan is for Dependent students only and the loan is borrowed in the parent's name. The loan is credit-based, therefore the parent must have a satisfactory credit history. The parent borrower can apply for the loan at https://studentaid.gov/app/launchPLUS.action?plusType=parentPlus.
New for academic year 2026-2027:
Current Pepperdine students – If a student or parent borrower has a federal loan disbursed before July 1, 2026, while the dependent student is enrolled in a program of study that begins before July 1, 2026, the parent can continue to borrow under current loan limits (Cost of Attendance – other Financial Assistance) through their student’s current program of study until program completion or for 3 academic years, whichever is less.
New Pepperdine students, or students that change academic programs, that borrow their federal student or federal parent loan for periods of enrollment beginning on or after July 1, 2026. $20,000 per year cap per dependent student and a $65,000 aggregate limit per dependent student.
The maximum annual amount is the Cost of Education minus other financial aid awarded. Processing of the loan application may take up to 15 days.
Loans with a first disbursement between 7-1-25 and 6-30-26 will have a fixed interest rate of 8.94%. Repayment begins immediately after the loan is fully disbursed. Deferment or forbearance of payment is available by contacting your loan servicer. The loan has a 10-year repayment period.
Federal Direct PLUS Loan will have a 4.228% Origination fee deducted from the loan disbursement amount.
Use a repayment calculator for the Federal Direct PLUS Loan.
A Private Alternative loan can be borrowed in place of the Federal Direct PLUS Loan.
If the parent is credit denied for the Federal Direct PLUS Loan, we will email information to the parent regarding Additional Federal Direct Unsubsidized Loan and Private Loan eligibility.