Federal Direct Student Loans for Undergraduate Students

Approximately 68% of the students at the University of New Haven borrow one or more federal student loans. The U.S. Department of Education uses the Cohort Default Rate (CDR) as a measure of federal student loan repayment at post-secondary institutions. The CDR represents the percentage of borrowers who entered repayment at a point in time, then defaulted (failed to make payments) on their loan within a three year period.

The last three official CDR for students entering repayment of their federal student loans at the University of New Haven are:

  • 3.7% for the 2018 fiscal year, when the national average for the same time period was 7.3%
  • 1.6% for the 2019 fiscal year, when the national average for the same time period was 2.3%
  • 0.0% for the 2020 fiscal year, when the national average for the same time period was 0.0%
    *The CDR was not calculated for 2020 due to the pandemic pause in student loan repayment.
    • These are low interest rate loans made to undergraduate students attending accredited colleges and universities.
    • A must be completed to have your eligibility determined for this loan program.
    • This loan(s) will be listed in your financial aid offer if you are determined to be eligible.
    • The interest rate for these loans is fixed and is 6.53% for new loans disbursed on or after July 1, 2024. Interest rates for the new academic year are determined by July 1 each year.
    • There is a loan fee that is deducted from the loan before it is disbursed to the school. The fee for loans first disbursed on or after October 1, 2020, is 1.057%.
    • Students must be enrolled in at least a half-time status to be eligible.

    There are two types of Direct Student Loans for undergraduate students, Subsidized and Unsubsidized and the FAFSA results determine the student's eligibility for the type of loan(s) offered.

    • The Direct Subsidized Student Loan

      • A federally subsidized loan program which is available on the basis of financial need.
      • The U.S. Department of Education pays the interest while you're in school at least half-time, and during other specified periods.

    • The Direct Unsubsidized Student Loan

      • The U.S. Department of Education does NOT pay interest on this type of loan.
      • Interest will start accruing on the date of your first disbursement.
      • Students may pay interest while in school but have the option to defer paying the interest until the loan goes into repayment.

  • The chart below provides the maximum loan amount a student may borrow.

    Grade Level Undergraduate Student Additional Amounts** (Independent Students & Dependents whose parent is denied forthe Direct Parent Loan)
    First year
    Less than 27 credits     		$5,500 $4,000
    Second year
    28 -56 credits     		$6,500 $4,000
    Third and Fourth years
    57 credits+     		$7,500 $5,000
    Maximum Total Debt from Federal Direct Student Loans as an undergraduate student $31,000 with a maximum of $23,000 in Direct Subsidized Student Loan $57,500 with a maximum of $23,000 in Direct Subsidized Student Loan

    NOTE: These amounts indicate the federal maximums. At least $2,000 of the maximum for each grade level will be Direct Unsubsidized Student Loan. Individual student loans are based on the need level, expected costs, other financial aid, and additional factors. Borrowers are reminded that there are upfront fees of 1.057% for loans disbursed on or after October 1, 2020.

    **Additional Loan amounts are available to eligible independent undergraduate students or dependent students whose parent is unable to borrow under the Federal Direct Parent PLUS Program.

    • Step 1:

      This is a federal requirement. It is a learning tool that is designed to provide you with some financial literacy and lets you know your rights and responsibilities in borrowing and repaying federal Direct student loans. Student Loan Entrance Counseling is completed at

    • Step 2:

      Signing the Master Promissory Note indicates your commitment to repay the loans you borrow.

      • You have the right to decline federal Direct student loans if you do not need the money to assist with paying your educational expenses.
      • You may cancel a pending federal Direct student loan after the Master Promissory Note has been submitted by notifying the Financial Aid Office in writing, at financialaid@newhaven.edu.
      • The Subsidized/Unsubsidized Federal Direct Student Loan Master Promissory Note is signed at
    • Submit all required documents to the Financial Aid Office to complete your file.
    • When your loans are processed, the U.S. Department of Education will place your loans with a federal loan servicer (company that collects the repayment of your loan(s)). That company will contact you about repaying the loans you borrowed.
    • Repayment begins after you graduate, leave school, or are no longer enrolled in at least a half-time status. There is a six-month grace period before you begin repayment, unless you have already used the grace period, or you have consolidated your loans.
    • To view your processed loans log into the federal website using your username and password.
    • The following link offers important information about . Repayment plans and calculators are available as well as information on Postponing Repayment (Deferment, Forbearance), Public Service Loan Forgiveness, Cancellation and Consolidation. You can estimate your monthly payments using the .

  • Ombudsman Group: The Student Loan Ombudsman’s Office has been established by the Dept. of Education to resolve problems between borrowers and the school, lender, guarantor, and loan servicers. You may submit a complaint online at or they may be contacted by:

    Telephone: 1-800-433-3243
    FAX: 606-396-4821

    Postal Mail:
    U.S. Department of Education
    FSA Ombudsman Group
    P.O. Box 1854
    Monticello, KY 42633