Federal Direct Loans
UMass Law participates in the federal Title IV Direct Loan program, offering Unsubsidized and Graduate Plus loans. New federal financial aid regulations in the One Big Beautiful Bill Act/OBBBA/OB3 are slated to take effect on July 1, 2026, including significant changes to Title IV financial aid programs.
File your FAFSA (Free Application for Student Aid).
For the 2026-2027 academic year students will be categorically identified as either:
- Legacy - Current/Returning students, Pre-July 1, 2026, with prior 2025/2026 federal loans
- New - Entering students or new financial aid applicants
Eligibility Requirements
Borrowers must file their FAFSA (Free Application for Student Aid) and meet the general Eligibility Requirements.
Unsubsidized Loans - Legacy & New
- U.S. Citizens and Permanent Residents and Eligible Non-Citizens
- Enrolled at least half-time
- Maintain satisfactory academic progress (as defined by your school)
- Cannot be in default on a federal student loan
Graduate PLUS Loans* (sunset June 30, 2029) - Legacy
- Be a current/returning graduate or professional degree student enrolled at least half-time at an eligible school in a program leading to a degree or certificate
- Not have an adverse credit history**
*Must be a current returning student with a previously disbursed 2025/2026 federal direct loan.
* *Applicants can add an endorser or appeal their credit decisions if denied.
Loan Amounts, Limit & Repayment
One Big Beautiful Bill Act/OCCCA/OB3
Amounts & Limits
Legacy – Pre July 1, 2026
- Unsubsidized annual loan is $20,500 or remaining eligibility, not to exceed Cost of Attendance (COA) and/or aggregate program allowance of $138,500
- Graduate Plus loan is up to annual COA, no aggregate loan limit
- No Lifetime Loan Limit
New – OBBBA/OB3
- Unsubsidized annual loan is $50,000 or remaining eligibility, not to exceed Cost of Attendance (COA) and/or aggregate Professional program allowance of 200,000
- Eliminates Graduate Plus loan eligibility
- Annual loan limits are determined on enrollment for the academic year. Subject to proration when enrollment changes per semester
- Lifetime loan limit $257,500 (includes $57,500 undergrad aid eligibility)
Repayment
Legacy – Pre July 1, 2026
- Repayment Options for new loans awarded on or after 7/1/26 - Standard Repayment or Repayment Assistance Plan/RAP
- Repayment Options for Borrowers with no additional loans disbursed after 7/1/2026 – Can enroll/switch between Income Base Repayment/IBR, 10yr Standard Repayment or Repayment Assistance Plan/RAP, Graduated, Extended and Income Contingent (ICR, PAYE, or REPAYE). If enrolled in ICR, PAYE or SAVE must switch by June 30, 2028, when plans are eliminated or will be automatically enrolled in RAP
- Govt/Public or (most) 501(C3) Non-Profit employee, eligible for the Public Service Loan Forgiveness/PSLF
New – OBBBA/OB3
- Unsubsidized annual loan is $50,000 or remaining eligibility, not to exceed Cost of Attendance (COA) and/or aggregate Professional program allowance of 200,000
- Eliminates Graduate Plus loan eligibility
- Annual loan limits are determined on enrollment for the academic year. Subject to proration when enrollment changes per semester
- Lifetime loan limit $257,500 (includes $57,500 undergrad aid eligibility)
Repayment Plans
The OBBBA creates two new repayment plans, the Tiered Standard Repayment Plan and the Repayment Assistance Plan (RAP), and sunsets the Income Driven Repayment Plans (ICR, PAYE, SAVE) by July 1, 2028.
Repayment plans for new loans disbursed on or after July 1, 2026.
Tiered Standard Repayment Plan -
- 10 years for debt amounts less than $25,000
- 15 years for debt amounts less than $49,999
- 20 years for debt amounts less than $99,999
- 15 years for debt amounts less than $100,00
Repayment Assistance Plan
Monthly payments based on Adjusted Gross Income (AGI).
|
Income |
Monthly Payment |
Income |
Monthly Payment |
|
$10,000 or less |
$10.00 |
Between $60,000 - $70,000 |
6% AGI |
|
Between $10,000 - $20,000 |
1% AGI |
Between $70,000 - $80,000 |
7% AGI |
|
Between $20,000 - $30,000 |
2% AGI |
Between $80,000 - $90,000 |
9% AGI |
|
Between $30,000 - $40,000 |
3% AGI |
Over $100,00 |
10% AGI |
|
Between $40,000 - $50,000 |
4% AGI |
|
|
|
Between $50,000 - $60,000 |
5% AGI |
|
|
- Provides student loan forgiveness after 360 qualifying monthly payments (30 years).
- Waives any unpaid monthly interest.
Interest rates & fees
Current Federal Interest Rates
Interest rate for a federal student loan varies depending on loan type and first disbursement date.
The table below provides fixed interest rates for Direct Unsubsidized Direct Graduate Plus, loans first disbursed on or after July 1, 2025, and before July 1, 2026.
Interest rates for Direct Loans first disbursed on or after July 1, 2023 & before July 1, 2024
| Loan Type | Borrower Type | Fixed Interest Rate |
|---|---|---|
| Direct Unsubsidized Loans | Graduate or Professional | 7.94% |
| Direct Graduate PLUS Loans | Graduate or Professional Students | 8.94% |
Origination fees for Direct Loans on or after October 1, 2019
Most federal student loans have loan fees. These fees are a percentage of the total loan amount.
Fees are derived from the amount of money that is disbursed (paid out) to you while in school. This means the money you receive will be less than the original amount you borrow.
The chart below shows the loan fees for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after Oct. 1, 2019.
| Loan Type | First Disbursement Date | Loan Fee |
|---|---|---|
| Direct Unsubsidized Loan | On or after 10/1/20 and before 10/1/26 | 1.057% |
| Direct Graduate PLUS Loan | On or after 10/1/20 and before 10/1/26 | 4.228% |