Federal Loans

Direct loan limits are set forth by the Department of Education and vary by academic level and student type. Within each class level, students are limited in the amount of the direct loan they can borrow each years based on several factors including their dependency status and the cost of attendance less any other financial aid that has been awarded.

Direct loan benefits are discussed during the student's required entrance counseling session and may also be reviewed on the Federal Student Aid website.

The interest rates are set by the Department of Education each academic year and are fixed for the life of the loan.

For 2025-26 the current interest rates are:

• Subsidized Loans: 6.39%
• Unsubsidized Loans (undergraduate student): 6.39%
• Unsubsidized Loans (graduate/professional student): 7.94%

An origination fee is also charged on federal student loans. See below for rates:

• For loans disbursed on or after 10/1/2019 and before 10/1/2020: 1.059%
• For loans disbursed on or after 10/1/2020 and before 10/1/2026: 1.057%

Direct Unsubsidized Loans are available to both graduate or professional degree students, regardless of financial need. 

To receive a loan, students must be enrolled at least half-time in a program that leads to a degree or certificate awarded by the school. 

New student borrowers must complete both an Entrance Counseling session and sign a Master Promissory Note online using the same Federal Student Aid (FSA) ID and password used to electronically sign the FAFSA before these loans can be disbursed. Only students who wish to utilize these loans need to complete these requirements. Students who would like to decline the federal direct loans awarded to them should review their financial aid offer letter instructions. 

Students who have forgotten their FSA ID or password, can complete these steps to retrieve or reset their information.

Students only need to file a FAFSA to be considered for Federal Direct Unsubsidized loans. The Student Financial Services office will include these loans in the financial aid offer letter based on a student's eligibility and financial need. 

Seattle University School of Law awards these loans at the "accepted" status. Students who would like to decline or reduce the Federal Direct Loans awarded to them should review their Financial Aid Offer letter instructions. 

Loan funds will automatically be disbursed to the student's Seattle University account at least 7 days before the first day of class each quarter as long as all the requirements are met including minimum enrollment.  

Students must be enrolled at least half-time to be eligible for federal loans; however, beginning with the 26-27 academic year, students enrolled less than full-time will have their loans pro-rated based on actual enrollment.  

Loan funds disbursed in excess of the tuition balance due will be processed as a Credit Balance Refund. Students can decide to return the excess funds to reduce the overall amount borrowed by submitting a reduction request to lawfa@seattleu.edu.

After a loan has been disbursed, the Department of Education will assign it to one of their loan servicers.  A loan servicer is responsible for answering loan account questions, sending out bills and processing loan payments, setting up repayment plans, and other services such as processing deferments or forbearances.  Students who have more than one loan may have more than one loan servicer.   

It is the student's responsibility to ensure that their loan servicer always has their current billing address and phone number.   

Students are able to see who is responsible for servicing their federal loans on the Federal Student Aid website and reviewing their loan history or by calling the Federal Student Aid Information Center at 1-800-433-3243.  

Once a student graduates, drops below half-time enrollment or leaves school (including SLOA), repayment typically begins after the 6-month grace period.

Students who graduate, drop below half-time or stop attending (including SLOA) are required to complete an Exit Counseling session. The exit counseling session must be completed even if the student plans to return to Seattle University School of Law or has transferred to another school. Students will receive an email from Student Financial Services requesting they complete the exit counseling session. The same FSA ID and password used on the FAFSA will also be used when signing in to complete exit counseling.

Students who file for bankruptcy may still be required to pay back this loan.