Federal Subsidized/Unsubsidized Direct Loan
(complete this form to document your decision to borrow)
Colby College financial aid offers do not include student loans to meet demonstrated financial need. Students may choose to borrow as a resource for financing the expected family contribution. Undergraduate students who are U.S. Citizens or permanent residents should complete the FAFSA, which is the first step in applying for a Federal Subsidized/Unsubsidized Direct Loan. The Free Application for Federal Student Aid (FAFSA) can be completed online.
If a student’s FAFSA is selected for federal verification, the process must be completed before federal loans can be requested and disbursed to the student account. We will notify students via their Colby email account regarding what information will be required in order to meet this requirement. Students who are selected and appear to be eligible for a Subsidized Direct Loan cannot choose an Unsubsidized Direct Loan in order to avoid the verification process. For frequently asked questions about verification, please click here.
Federal Subsidized/Unsubsidized Direct Loans
For information on Federal Direct Loans, please click here. Additional information, including estimated payment calculators, can be found at studentaid.gov.
Interest Rates for Undergraduates Borrowing Loans Disbursed during the 2024-2025 academic year:
| 6.53% | Fixed, for Subsidized Direct Loans | |
| 6.53% | Fixed, for Unsubsidized Direct Loans |
Colby College will disburse aid funds after the add/drop period, approximately two weeks after the start of classes each semester, once credit hours have been confirmed and all financial aid and loan requirements have been met.
Loans with a first disbursement date on or after October 1, 2020 and before October 1, 2025 will incur a 1.057% origination fee. This fee is subtracted from the amount borrowed prior to the remaining proceeds credited to the student account.
Maximum Annual Direct Loan Limits (for dependent students):
| Year 1 (Freshman) | $5500 (maximum $3500 subsidized) | |
| Year 2 (Sophomore) | $6500 (maximum $4500 subsidized) | |
| Year 3 (Junior) | $7500 (maximum $5500 subsidized) | |
| Year 4 (Senior) | $7500 (maximum $5500 subsidized) |
This table shows annual maximum loan amounts for dependent students. Some individuals won’t be eligible to borrow the maximum amounts based on information provided on their FAFSA and Colby aid application. In cases where a parent is denied a Federal Direct Parent PLUS Loan or the student is considered independent according to the federal regulations, the student may have additional eligibility. Students will be notified of their eligibility on the Financial Aid Award. We will process loans for the amount requested, up to the student’s borrowing limit.
Subsidized Direct Loans do not accrue interest while the student is enrolled at least half-time. Eligibility is based upon need as determined by the federal formula. Repayment begins six months after the student is no longer enrolled or drops to less than half time.
Unsubsidized Direct Loans are not based upon need, and interest does accrue while the student is enrolled; however, payments are not required while the student is enrolled at least half time and any unpaid interest will be capitalized (added to the principal loan amount) at the time of entering repayment. Repayment begins six months after the student is no longer enrolled or drops to less than half time.
The undergraduate dependent lifetime aggregate limit for Direct Subsidized/Unsubsidized Loans is $31,000, of which no more than $23,000 can be subsidized. Full details for dependent and independent aggregate limits are available here.
Upon receipt of the completed Federal Loan Request Form, loans borrowed from the Federal Direct Loan Program (FDLP) will be reflected as “pending” on the student account and will be considered before the assessment of late fees. If borrowing from the FDLP for the first time, we will contact you with instructions on how to complete entrance counseling and a Master Promissory Note (MPN) electronically.
Borrowers can view their Federal Student Loan and lender information by logging in with their FSA ID at studentaid.gov.
If seeking to consolidate your federal education loans, please click here for information regarding the Federal Direct Loan Consolidation Program.
Opportunity Maine
The Opportunity Maine program is designed to provide a Maine state tax credit to help cover the payment of student loans for eligible Maine students who work and pay taxes in the state after they finish school. Beginning with any loans that a student borrows in January 2008, graduates may be eligible for an Educational Opportunity Tax Credit to help pay student loans. For more information about this program, click here.