Federal Student Loans

Youngstown State University participates in the Federal Direct Loan Program. All loan funds are disbursed directly from the U.S. Department of Education to Youngstown State University, with no involvement from third-party lenders or guaranty agencies.

All Youngstown State University students who complete the Free Application for Federal Student Aid (FAFSA) are automatically evaluated for Federal Direct Loans. Loan eligibility is determined by your grade level and amount already borrowed at the time your financial aid is packaged. YSU offers loans only after considering your eligibility for grants, scholarships, and Federal Work-Study (FWS). Remember that student loans must be repaid, so please borrow responsibly. Take out only what you need to minimize future financial obligations.

As a borrower, it is important to understand your responsibilities. This includes knowing how your loan funds will be utilized, understanding your obligations as a loan recipient, and staying aware of policies that may affect your loan eligibility and repayment.

To learn strategies for reducing loan debt, managing your student loans, and preparing for repayment, visit the YSU debt management page.

Recent Federal Loan Changes

Interest Rates: Undergraduates will borrow at a fixed rate of 6.39% for 2025-2026 (effective July 1) on both subsidized and unsubsidized Direct loans and Parent PLUS loan borrowers at 8.94% 

 

Effective 2026-2027 academic year:

Loan Proration: Federal Direct loans will be prorated (reduced) based on a student’s enrollment by semester and annually for less than full time enrollment. If a student plans to attend below full-time hours (minimum 12 hours per semester/24 hours a year), the loan amount offered will be adjusted.

Parent PLUS Loan: Parents who wish to borrow a Parent PLUS loan for a new undergraduate, dependent student attending YSU during the 2026-2027 academic year, and forward, are limited to borrowing $20,000 a year per student with an aggregate (lifetime) loan limit of $65,000 per student. Please refer to the Parent PLUS loan section of this website for more information on how to apply for a Parent PLUS loan.

Parent Plus Legacy Borrowers: Students, or parents, who received a disbursement of a Federal Student Loan (subsidized, unsubsidized, or Parent PLUS) before July 1, 2026 (2026-2027 aid year), for the same program of study at the same institution will have a legacy provision, that allows them to borrow based on previous loan limits, for up to three academic years or the end of the dependent student's academic program, whichever comes first. To qualify, students must remain enrolled in the same program of study at the same institution.

 

Federal Direct Student Loan Information

Subsidized Direct Loan - This type of loan is awarded based on financial need. While you are enrolled in school at least half-time, you are not responsible for paying the interest that accrues on the loan—the federal government covers the interest during this period. Please note that graduate students are not eligible for Subsidized Direct Loans.

Unsubsidized Direct Loan - This type of loan is not awarded based on financial need. Interest begins accruing 30 days after disbursement, including while enrolled in school. Borrowers may choose to defer interest payments while in school; however, any unpaid interest will be added to the principal balance when repayment begins. If borrowers prefer to pay the interest while enrolled, you must contact your loan servicer to set up payment arrangements.

Half-time enrollment is a requirement to secure Direct Federal funding. Repayment of Federal loans and repayment begins six months after graduation, or when enrollment drops below half-time. 

 

Loan Limits 

Dependent 
Undergraduates 

Independent 
Undergraduates 

1st year 
(Freshman) 

$5,500 max 

$3,500 of this amount may be subsidized loans 

$9,500 max 

$3,500 of this amount may be subsidized loans 

2nd year 
(Sophomore) 

$6,500 max 

$4,500 of this amount may be subsidized loans 

$10,500 max 

$4,500 of this amount may be subsidized loans 

3rd & 4th year 
(Junior and Senior) 

$7,500 max

$5,500 of this amount may be subsidized loans 

$12,500 max 

$5,500 of this amount may be subsidized loans 

Aggregate Lifetime Limit 
 

$31,000 max

$23,000 of this amount may be subsidized loans 

$57,500 max 

$23,000 of this amount may be subsidized loans 

Parent PLUS Loan for dependent students only– Effective 7/1/2026 (2026-2027 aid year)

$20,000 yearly per student

$65,000 lifetime max per student 

 

 

 

First-time Direct loan borrowers – Students borrowing a Federal Direct Loan for the first time at YSU are required to complete Entrance Loan Counseling and sign a Direct Loan Master Promissory Note (MPN). Both requirements can be completed online at Studentaid.gov.  This site is also where students complete Exit Loan Counseling when they graduate, leave the University, or drop below half-time enrollment.  

To remain eligible for federal student loans, students must meet Satisfactory Academic Progress (SAP) standards and must not be in default on any Title IV federal aid. For additional details, visit the Department of Education’s page on Federal Student Loans. 

YSU Student Loan Code of Conduct

 

Federal Parent PLUS Loan

The Federal Parent PLUS Loan allows parents of dependent undergraduate students with acceptable credit history to borrow funds to help cover their student's educational expenses. This federally funded loan has a fixed interest rate of 8.94% (2025–2026). Repayment typically begins 60 days after the final loan disbursement, though deferment is available while the student is in school.  

If a parent’s PLUS credit check is denied, the student becomes eligible for an additional Unsubsidized Direct Loan. For more details, visit the Department of Education’s page on Federal PLUS Loans.

The Department of Education’s PLUS application process combines the YSU Parent PLUS Loan Request and the Direct Parent PLUS Master Promissory Note (MPN) into a single online workflow. To sign the MPN electronically, the parent borrower must have an FSA ID. Parents who do not yet have an FSA ID can create one through the Department of Education’s (DOE)  FSA ID site.

Parents can apply for the Federal Direct Parent PLUS Loan through the DOE online application. Since the parent is the borrower, the parent must log in using their Parent FSA ID (not the student’s FSA ID) to apply for the loan.

Federal Links

Please Note: All first‑time federal student loan borrowers are required to complete both Entrance Loan Counseling and a Master Promissory Note (MPN). Additionally, graduating students, as well as students who withdraw, stop attending, or drop below halftime enrollment, must complete Exit Loan Counseling.

Students can view their federal loan history and find their loan servicer’s contact information by logging into studentaid.gov. 

Recent Federal Loan Changes

Interest Rates: Graduate students will borrow at a fixed rate of 7.94% for 2025-2026 (effective July 1) for unsubsidized Direct loans and Grad PLUS loan borrowers at 8.94%.

 

Effective 2026-2027 academic year:

Loan Proration: Federal Direct loans will be prorated (reduced) based on a student’s enrollment by semester and annually for less than full time enrollment. If a student plans to attend below full-time hours (minimum 6 hours per semester/12 hours a year), the loan amount offered will be adjusted.  

Grad PLUS Loan: Graduate PLUS loans will be discontinued effective July 1, 2026, and will not be available for new federal student loan borrowers for the 2026-2027 aid year. Only students who qualify as Legacy Borrowers (see definition below) may still have access to a Grad PLUS Loan. Graduate students who do not qualify as Legacy Borrowers will not be eligible to borrow a Grad PLUS Loan.

Grad PLUS Loan Legacy Borrowers: A Grad PLUS Legacy Borrower is a graduate student who received a disbursement of a Federal Student Loan (subsidized, unsubsidized, or Grad PLUS) before July 1, 2026 (2026-2027 aid year), for the same program of study at the same institution. Students who meet this criterion may continue borrowing under prior loan limits for up to three academic years or until program completion, whichever comes first.  

Important: Changing programs or starting a new degree after July 1, 2026, will be subject to the new borrowing limits and will not be eligible for the Grad PLUS Loan.  

Loan Limits: Graduate students who borrow Federal Direct Unsubsidized Loans can receive up to $20,500 per year, with a $100,000 lifetime limit. Professional students (see definition below) can receive up to $50,000 per year, with a $200,000 lifetime limit. These lifetime limits do not include any undergraduate loans.  

Lifetime Aggregate Loan Limits: The lifetime aggregate loan limit includes undergraduate, graduate, and professional borrowing, but excludes Parent PLUS loans is $257,000.

Definition of Professional Student: A professional student, as defined by the Department of Education, is a student enrolled in a program of study in which upon completion will be awarded a professional degree. The eligible Professional programs of study are:  

  • Medicine (M.D.)
  • Osteopathic Medicine (D.O.)
  • Dentistry (D.D.S., D.M.D.)
  • Law (J.D. or L.L.B.)
  • Pharmacy (Pharm.D.)
  • Veterinary Medicine (D.V.M.)
  • Optometry (O.D.)
  • Theology (M.Div., or M.H.L.)
  • Podiatry (D.P.M., D.P. or Pod.D)
  • Chiropractic (D.C. or D.C.M.)
  • Clinical, Counseling, and Applied Psychology (Psy.D. or Ph.D.) 

 

Federal Direct Loan Information

Unsubsidized Direct Loan - This type of loan is not awarded based on financial need. Interest begins accruing 30 days after disbursement, including while enrolled in school. Borrowers may choose to defer interest payments while in school; however, any unpaid interest will be added to the principal balance when repayment begins. If a borrower prefers to pay the interest while enrolled, you must contact your loan servicer to set up payment arrangements.

Half-time enrollment is a requirement to secure Federal loans and repayment begins six months after graduation, or when enrollment drops below half-time. 

 

Loan Limits 

Professional Students 

Graduate Students 

Annual 

$50,000 

$20,500 Max 

Aggregate Lifetime Limit 

$200,000 (Does not include undergraduate loans. Students who pursue both a graduate and professional degree are still capped at $200,000) 

 

$138,500 (Legacy Borrower – includes undergraduate loans.

$100,000 (2026-2027 New Borrower – does not include undergraduate loans) 

*Overall Lifetime Cap 

$257,500 (Includes undergraduate, graduate, and professional loans. Excludes Parent PLUS loans.) 

 

 

First-time Direct loan borrowers – Students borrowing a Federal Direct Loan for the first time at YSU are required to complete Entrance Loan Counseling and sign a Direct Loan Master Promissory Note (MPN). Both requirements can be completed online at Studentaid.gov.  This site is also where students complete Exit Loan Counseling when they graduate, leave the University, or drop below half-time enrollment.  

To remain eligible for federal student loans, students must meet Satisfactory Academic Progress (SAP) standards and must not be in default on any Title IV federal aid. For additional details, visit the Department of Education’s page on  Federal Direct Loans.

YSU Student Loan Code of Conduct

 

Federal Grad PLUS Loan Information 

(Legacy Students Only)

Graduate PLUS loans will be discontinued effective July 1, 2026, and will not be available for new federal student loan borrowers for the 2026-2027 aid years and forward. Only students who qualify as Legacy Borrowers (see definition below) may still have access to a Grad PLUS Loan. Graduate students who do not qualify as Legacy Borrowers will not be eligible to borrow a Grad PLUS Loan.

A Grad PLUS Legacy Borrower is a graduate student who received a disbursement of a Federal Student Loan (subsidized, unsubsidized, or Grad PLUS) before July 1, 2026, for the same program of study at the same institution. Students who meet this criterion may continue borrowing under prior loan limits for up to three academic years or until program completion, whichever comes first.  

Important: Changing programs or starting a new degree after July 1, 2026, will be subject to the new borrowing limits and will not be eligible for the Grad PLUS Loan.  

Grad PLUS Loans are federal loans that help graduate and professional students cover the cost of their education. These loans require a credit check, at least halftime enrollment, and come with a fixed interest rate, currently set  at 8.94%.

For more details, please visit the U.S. Department of Education’s (DOE) page on Federal Grad PLUS Loans.  Students can apply for the Grad PLUS Application through the DOE online application using their FSA ID.  

Federal Links

Please Note: All first‑time federal student loan borrowers are required to complete both Entrance Loan Counseling and a Master Promissory Note (MPN). Additionally, graduating students, as well as students who withdraw, stop attending, or drop below half‑time enrollment, must complete Exit Loan Counseling.

Students can view their federal loan history and find their loan servicer’s contact information by logging into studentaid.gov.