Loan amounts and types
This page provides information about the federal loan types and borrowing limits available to eligible students at London Metropolitan University. Students should also review the main US Federal Student Aid page for full eligibility requirements, federal regulations, and important updates affecting borrowing from July 2026.
Undergraduate loans
Direct subsidized loans
Direct Subsidized Loans are available to eligible undergraduate
who demonstrate financial need. The US government pays the interest on subsidized loans during eligible periods of study and approved deferment.
Direct unsubsidized loans
Direct Unsubsidized Loans are available to eligible undergraduate students regardless of financial need. Interest accrues from the date of disbursement.
Undergraduate annual borrowing limits
| Undergraduate level | Annual borrowing limit |
|---|---|
| First year undergraduate | $5,500 |
| Second year undergraduate | $6,500 |
| Third year undergraduate | $7,500 |
Undergraduate aggregate lifetime limits
| Students status | Aggregate liftime timit |
|---|---|
| Dependent undergraduate status | $31,000 |
| Independent undergraduate status |
$57,500 |
Previous federal borrowing may reduce remaining eligibility.
Parent PLUS loans
Parent PLUS Loans are available to parents of dependent undergraduate students subject to:
- federal credit approval
- annual borrowing limits
- aggregate lifetime borrowing limits
Parent PLUS Loans are legally the responsibility of the parent borrower and do not count toward the student’s aggregate borrowing limit.
Parent PLUS borrowing limits
Annual Borrowing Limit $20,000
Aggregate Lifetime Limit $65,000
The aggregate lifetime limit may reduce the amount available in later years of study.
Postgraduate loans
| Student type | Annual borrowing limit | Aggregate lifetime limit |
|---|---|---|
| Graduate students | $20,500 | $100,000 |
| Professional students | $50,000 | $200,000 |
Previous undergraduate borrowing and prior federal loans may reduce remaining borrowing eligibility under federal aggregate lifetime borrowing limits.
Annual federal borrowing limits
Federal student aid is subject to:
- annual borrowing limits
- aggregate lifetime borrowing limits
- overall federal borrowing regulations establish by the US Department of Education
Students are encouraged to review their federal borrowing history carefully before accepting additional loans.
Interest rates and loan fees
Federal loan interest rates and origination fees are determined annually by the US Department of Education.
Students should review:
- current interest rates
- repayment obligations
- deferment rules
- repayment plan options
before accepting federal loans
Current federal student loans interest rates and origination fees
(For loans first disbursed between 1 July 2025 and 30 June 2026)
| Loan types | Interest rate | Origination fees |
|---|---|---|
| Direct subsidized loans (undergraduate) | 6.39% | 1.057% |
| Direct unsubsidized loans (undergraduate) | 6.39% | 1.057% |
|
Direct unsubsidized loans (graduate/professional) |
7.94% | 1.057% |
|
Parent PLUS loan |
8.94% | 4.228% |
| Graduate PLUS loan* | 8.94% | 4.228% |
* Graduate PLUS Loans are generally unavailable to new postgraduate borrowers beginning study from 1 July 2026. Some continuing students covered by transitional (“grandfathered”) arrangements may remain eligible subject to federal guidance. Federal loan interest rates are fixed for the life of the loan once disbursed. Interest rates and origination fees are determined annually by the US Department of Education. The origination fee is deducted from each loan disbursement before funds are released to the University or student.
Cost of Attendance (COA)
London Metropolitan University calculates a Cost of Attendance (COA) for federal aid purposes. The COA is an estimate of educational expenses and living costs while studying in London. Federal annual and aggregate borrowing limits may restrict the amount a student is eligible to borrow regardless of their approved COA. Students may therefore need additional personal funding during their studies.
Further information
For application guidance, please refer to the Application Process page.
For continuing student guidance and transitional (“grandfathered”) arrangements, please refer to the Continuing Students page.