US Federal Loan Types
Available Loans
The type of loans and the amount you can borrow is dependent on whether you are a graduate or undergraduate student. Details on this can be found on the Student Aid website.
The US Department of Education has produced a helpful guide about the types of loans that are available including eligibility, guidance on responsible borrowing and repayments. Before you apply for a loan, you should think about whether you can afford the repayments. StudentAid has a repayment estimator to help you plan your education loans and repayment options.
If you are interested in applying for a private US student loan, please refer to the information on applying for Private Student Loans.
If you are considering applying for federal loans for a course that begins on or after 1 July 2026 then the changes covered on this page will apply to the federal loans you will be able to access towards the Cost of Attendance.
If you are currently enrolled and in receipt of federal loans for a programme that will continue beyond 1 July 2026, then you need to be aware of the changes set out on this page for future study. However, you should pay particular attention to the section related to the ‘grandfathering’ of the existing funding provisions. Existing students would be grandfathered for no more than three years (see Grandfathering Clause section).
Loan Limits
A Cost of Attendance (CoA) worksheet will be completed by the US Federal Loan Team at Cardiff Metropolitan University for all students applying for US loans. This will calculate the loan amount to which you are entitled and will refer to the costs of completing your study at Cardiff Metropolitan University for one academic year.
Please note that there a maximum loan amounts which vary depending on your level, dependency status and type of loan. These limits not only apply to each academic year, but also to the amount you borrow over your lifetime which is referred to as Aggregate Loan Limits. These are detailed below.
Based on the changes to the types of loans and the annual loan limits you may not be able to borrow Title IV Direct Loans to cover the total cost to study. You can find details of alternative loan types on our Private Student Loans pages.
| Direct Unsubsidised Loan (Federal) | Direct Grad PLUS loan (Federal) | Private Loan | |
| Maximum amount per academic year | $20,500 | Total amount remaining after all other aid/loans have been deducted from COA. | Total amount remaining after all other aid/loans have been deducted from COA. |
| Lifetime Aggregate loan limit | $138,500 (no more than $65,500 of this may be Direct Subsidised loans and includes undergraduate borrowing) | No Limit | Depends on lender |
Your entitlement to loans is explained below and on your government website at studentaid.gov. These are the borrowing limits for subsidized and unsubsidized loans as detailed above.
A PLUS loan is available to cover the difference between these loans and the full cost of attendance. PLUS loans are only available to parents of dependent undergraduates and to independent graduate students.
Please Note: Independent undergraduates have no entitlement to a PLUS loan.
Before completing a loan application, you will need to determine whether you are a dependent or an independent undergraduate and this will establish which loan types and amounts you are eligible to borrow.
| Dependent Undergraduate Students (except students whose parents are unable to obtain PLUS loans) | |||
| | Direct Subsidized Loan (Federal) | Direct Unsubsidized Loan (Federal) | Combined SUB and UNSUBS Direct (Maximum) Loan |
| 1st Year | $3500 | $2000 | $5500 |
| 2nd Year | $4500 | $2000 | $6500 |
| 3rd Year | $5500 | $2000 | $7500 |
| Independent Undergraduate Students (and dependent students whose parents are unable to obtain PLUS loans) | |||
| 1st Year | $3500 | $6000 | $9500 |
| 2nd Year | $4500 | $6000 | $10500 |
| 3rd Year | $5500 | $7000 | $12500 |
| Graduate/Professional | |||
| Maximum federal loan amount per academic year | $0 | $20500 | $20500 |
| Lifetime Aggregate Loan Limit | Dependant Undergraduate: $31,000 - no more than $23,000 Subsidised loans Independent Undergraduate: $57,500 - no more than $23,000 Subsidised loans |
Establishment of New Loan Limits and Termination of Graduate PLUS Loans
The changes to loan limits and the types of loans available are set out in this section.
Federal Direct Loan limits
- The Act imposes annual and aggregate limits on Federal Direct Unsubsidized Loans for graduate and professional students. The aggregate limits for graduate loans do not include undergraduate loan debt.
- Graduate study: $20,500 annual limit, $100,000 lifetime limit
- Professional study: $50,000 annual limit, $200,000 lifetime limit
- Starting 1 July 2026, students may not borrow more than $257,500 in total federal student loans, regardless of if they have repaid previous loan debt.
PLUS Loans
- Beginning 1 July 2026, Parent PLUS Loans will be capped at $20,000 annually with an aggregate limit of $65,000 per dependent student.
- Beginning 1 July 2026, Graduate PLUS Loans will no longer be available to new borrowers.
Grandfathering Clause for Existing Borrowers
Interim Exception for Certain Students
Students who are currently enrolled in a programme and have received a federal loan on or before 30 June 2026, will be exempt from the new loan caps and PLUS Loan elimination for a limited period. The exemption lasts for the lesser of:
- three academic years, or
- the difference between the total length of the program the borrower is enrolled in and the period of the program the borrower has already completed. This is calculated based on the program’s length and the student’s progress to date.
If your programme of study has an end date that is beyond the next three academic years, any federal loans you take out from that point will be subject to the new loan caps set out in The Act.
If, during the next three years and before the original end date of your programme, you suspend study for longer than 180 days (and are therefore withdrawn from the loan programme), or there is a change to the original duration of your programme, the exemption will lapse, and your loans will be subject to the new loan caps set out in The Act.
Loan Fees
Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you received while enrolled at Cardiff Metropolitan University. This means the money you receive will be less that the amount you actually borrow and not just the amount you received.
The chart below shows the loan fees for Direct Subsidised, Direct Unsubsidised and Direct PLUS Loans disbursed on or after 01 October 2024 for Financial Year 2024/2025 and loans disbursed on or after 01 October 2025 for Financial Year 2025/2026.
| Loan Type | First Disbursement Date | Loan Fee |
| Direct Subsidised Loans Direct Unsubsidised Loans |
On or after 01 October 2024 and before 01 October 2025 | 1.057% |
| Direct PLUS Loans | On or after 01 October 2024 and before 01 October 2025 | 4.228% |
| Direct Subsidised Loans Direct Unsubsidised Loans |
On or after 01 October 2025 and before 01 October 2026 | 1.057% |
| Direct PLUS Loans | On or after 01 October 2025 and before 01 October 2026 | 4.228% |
Repayment of Loans
Information regarding future repayment options and calculators.