Federal Direct Loans allow you to borrow money directly from the Department of Education to fund your college tuition and expenses. Direct loans are a serious long-term obligation that must be repaid with interest, so make sure you carefully consider whether borrowing is the right option for you as you follow the steps to get the aid you need.
Student Loans
Direct Loan Basics - US Dept of Education
Direct Subsidized Loan
Subsidized loans are low-interest, need-based loans with flexible repayment options.
With these loans, you will not be charged interest while you are enrolled at least
as a half-time student, during your grace period, or during your deferment periods.
You will only begin accruing interest once you have entered repayment.
Direct Unsubsidized Loans
Unsubsidized loans are non-need based, low-interest loans with flexible repayment
options. Unlike subsidized loans, unsubsidized loans require that you begin paying
interest following your first disbursement. If you decide an unsubsidized loan is
your best option, you will need to submit a separate worksheet and request form to
Mesa with your justification and budget plan.
Direct Loan Limits
The amount of loan aid you will receive depends on a few factors, including your grade
level, current cost of attendance, your enrollment status, and other financial aid
awards that you may receive.
| Dependent Students | ||
| Class Level | Subsidized | Total Sub/Unsub |
| Freshman | $3,500 | $5,500 |
| Sophomore | $4,500 | $6,500 |
| Junior | $5,500 | $7,500 |
| Senior | $5,500 | $7,500 |
| Aggregate | $23,000 | $31,000 |
| Independent Students | ||
| Class Level | Subsidized | Total Sub/Unsub |
| Freshman | $3,500 | $9,500 |
| Sophomore | $4,500 | $10,500 |
| Junior | $5,500 | $12,500 |
| Senior | $5,500 | $12,500 |
| Aggregate | $23,000 | $57,500 |
Less Than Full-Time Loan Adjustments - The One Big Beautiful Bill Act (OB3 or OBBBA), sometimes referred to as the "Working Families Tax Cuts" Act, which was signed into law on July 4, 2025, requires that a student's annual loan limit be adjusted if they enroll less than full-time.
If a student drops classes during the the middle or at the end of the semester, loan eligibility will need to be recalculated based on the total units enrolled for the academic year. Loans will either need to be adjusted for the current semester or a future disbursement may be reduced based on the new revised total loan limit.
Disbursement Funds will be disbursed twice per loan period. If you are a first-time borrower, your loan will not be disbursed until at least 30 days after the start of the semester. If you have "late start" classes, you must be actively attending classes in at least six units for loan funds to be disbursed.
Cancellation - Federal Direct Loan borrowers have the right to cancel their Federal Direct Loan and students are notified of this right on the award letter when the loan was certified. The Federal Direct Loan Cancellation form [found on our Financial Aid forms page] can be used to have the San Diego Mesa College Financial Aid Office make the requested adjustment. If this form is submitted prior to or up to 14 days after disbursement, the cancellation will be performed and the student will receive notice of the new award amount. If submitted more than 14 days after disbursement, the San Diego Mesa College Financial Aid Office will evaluate the request and forward a notification if the cancellation can still be done, as well as the impact on the student’s account.
Alternative Loans- Credit based private loan whose interest rates and repayment plans are generally not regulated by the Federal government. This is an alternative for students not eligible for Federal student loans. All students applying for an Alternative Loan must have submitted a valid FAFSA for the year they are applying.
Parent Loans
3. Federal Direct Parent PLUS Loan
Federal Direct Parent loans are low-interest loans for parents to help pay for the
cost of their child's education.
Loan Amounts
Legacy Borrowers: the amount of loan aid parents can borrow may be up to the cost
of their child's attendance minus any financial aid they receive.
New Borrowers: after July 1, 2026, the parent annual limit is $20,000 per dependent student. The total aggregate loan limit is $65,000 per dependent student.
Direct Loan Eligibility
You are eligible for the Federal Direct Parent PLUS loan if:
- You are the student’s biological or adoptive parent or step-parent if married to the child’s parent at the time of their application.
- Your student is determined to be a dependent.
- Your student is enrolled in at least 6 units (half-time).
- You must not be in default on any federal education loans or owe an overpayment on a federal education grant.
- You must have good credit as determined by the U.S. Department of Education loan servicing agency.
- You and your student must be U.S. citizens or eligible non-citizens.
- Your student must maintain Satisfactory Academic Progress (SAP).
Steps to Apply
- Ensure that your student meets the eligibility requirements
See the financial aid requirements - Ensure that your student submits a financial aid application
Learn more about how to apply for aid - Complete the 4-step PLUS Application process which includes:
- Consenting to a credit check
- Signing an eMPN
Disbursement
Funds will be disbursed twice per loan period. If you are a first-time borrower, your
check will not be disbursed until at least 30 days after the start of the semester.
If you have “late start” classes, you must be actively attending classes in at least
six units for loan funds to be disbursed.
