Federal Direct Loans are loans offered to eligible students by the U.S. Department of Education. The amount students can borrow depends on whether they are dependent undergraduates, independent undergraduates, or graduate students.
Subsidized loans may be awarded to undergraduate students with financial need, as determined on the basis of the Free Application for Federal Student Aid (FAFSA). The federal government pays the interest on subsidized loans for students while they are
enrolled in school at least half-time.
Unsubsidized loans begin accruing interest upon disbursement. For more information on the difference between subsidized and unsubsidized federal loans, visit studentaid.gov or speak with a financial aid counselor.
We encourage you to learn about the student loan default rate.
The 2022-2023 undergraduate interest rate for direct subsidized loans and direct unsubsidized loans is 4.99%. The 2022-2023 graduate interest rate for direct unsubsidized loans is 6.54%.
Based on the most recent available data, the average loan amount for all undergraduate students at The New School is $5,888 for the 2021-2022 academic year. Of all undergraduate students (including freshmen) at The New School, 36 percent use federal student loans to help pay for their university education.
Direct Stafford Loan Annual and Aggregate Loan Limits
| Year of Study* | Dependent Student Amount | Independent Student Amount |
|---|
| First year (0–29 credits) | $5,500 (max. $3,500 sub.) | $9,500 (max. $3,500 sub.) |
| Second year (30–59 credits) | $6,500 (max. $4,500 sub.) | $10,500 (max. $4,500 sub.) |
| Third year and beyond (60+ credits) | $7,500 (max. $5,500 sub.) | $12,500 (max. $5,500 sub.) |
| Aggregate Total Loan Amount | $31,000 (max. $23,000 sub.) | $57,500 (max. $23,000 sub.) |
*Year-of-study credit level is based on enrollment in an undergraduate degree program. Tiered eligibility differs for undergraduate diploma.
Applying for a Direct Loan
First, submit your FAFSA.
Once your FAFSA is processed, your loan offer will appear on your
financial aid award letter. The amount undergraduate students can borrow
depends on whether they
are dependent or independent and on how many credits they have
earned toward their degree. Graduate students can borrow up to $20,500
in Federal Direct Loans each academic year, depending on their remaining
eligibility.
Review Your Unmet Requirements
You can view your requirements and accept or decline the full amount or a partial amount of your loan offer in your MyNewSchool account.
Accepting certain forms of aid, such as Federal Direct Loans,
requires applicants to take additional steps, such as completing
entrance counseling and signing a Master Promissory Note on studentaid.gov.