Introduction
To be eligible for Federal Direct Stafford Loans, students must enroll in at least 6 hours (half-time).
Subsidized Loans (undergraduates only)
- Need-Based
- No interest while in school
- Fixed Interest rate: 6.39% for 2025-2026
Unsubsidized Loans
- Not Need-Based
- Interest accrues immediately
- Fixed Interest rate: 6.39% for 2025-2026
Interest Rates
Interest rates for Federal Direct Stafford loans are fixed but can change annually. See complete interest rate information here.
Origination Fees
There is approximately a 1% origination fee for Federal Direct Stafford loans.
Completing Loan Requirements
Master Promissory Note (MPN)
First time UIC loan borrowers must sign a Master Promissory Note (MPN) agreeing to pay back the loan, with interest, according to the terms of the program. Complete the MPN online here.
Direct Loan Entrance Counseling
Direct Loan Entrance Counseling MUST be completed prior to disbursement. The counseling session and quiz help students understand their loan responsibilities.
Direct Loan Exit Counseling
Students must complete Direct Loan Exit Counseling upon leaving school.
Schedule of Reductions/Loan Proration Q & A
Q: What is the Schedule of Reductions/Loan Proration?
A: The Schedule of Reductions/Loan Proration is a recent change that went into effect on July 1, 2026, as part of the One Big Beautiful Bill Act. This change requires federal direct loans to be prorated (reduced proportional to enrollment) for students enrolled less than full-time beginning with the 2026-2027 academic year.
Q: What is full-time status for undergraduate students?
A: For undergraduate students, 12 hours is full-time per semester.
Q: What is full-time status for graduate and professional students?
A: For graduate and professional students, 9 hours is full-time per semester.
Q: What is full-time status for Online students in a Limited Standing program?
A: For Online students in a Limited Standing program, 6 hours is full-time per semester.
Q: How can I prevent my loans from being affected by the Schedule of Reductions/Loan Proration?
A: Students must be enrolled full-time in both the fall and spring semesters for loans not to be affected by the Schedule of Reductions/Loan Proration.
Q: How do I notify your office that I am enrolled less than full-time?
A: Please complete the following steps below to report your enrollment:
- Log into the portal at https://my.uic.edu
- Click on the “Student” Tab
- Under Financial, expand Financial Aid and Click on ‘Financial Aid Notification’
- Select the to view your Financial Aid Notification
- Scroll to the bottom and Select “Request Changes”
- Follow the questions to report your enrollment hours for the academic year
- Submit
Q: How long does it take your office to review my reported enrollment?
A: It takes around 2-3 weeks to review your reported enrollment.
Q: Are all loans affected by the Schedule of Reductions/Loan Proration?
A: No, only certain federal loans are affected by the Schedule of Reductions/Loan Proration. They include the Federal Direct Subsidized Loan, the Federal Direct Unsubsidized Loan, and the Federal Direct PLUS Loan for Graduate and Professional students.
The Federal Direct Parent PLUS Loan and alternative/private educational loans are not subject to the Schedule of Reductions/Loan Proration.
Q: Can you provide an example of how my loans will be prorated?
A: Please see the chart below for some examples of how loans will be prorated for students enrolled less than full-time for the Fall 2026 semester. The examples show one-term loan amounts.
Loan prorated chart
| Student Level | Initial Subsidized Loan Eligibility for the Fall 2026 Semester | Full-Time Enrollment Hours for the Fall 2026 Semester | Actual Enrolled Hours for the Fall 2026 Semester | Prorated Subsidized Loan Amount for the Fall 2026 Semester |
|---|---|---|---|---|
| Undergraduate (Junior/Senior) | $2,750 | 12 | 11 | $2,530 |
| Undergraduate (Junior/Senior) | $2,750 | 12 | 10 | $2,310 |
| Undergraduate (Junior/Senior) | $2,750 | 12 | 9 | $2,063 |
| Undergraduate (Junior/Senior) | $2,750 | 12 | 8 | $1,843 |
| Undergraduate (Junior/Senior) | $2,750 | 12 | 7 | $1,623 |
| Undergraduate (Junior/Senior) | $2,750 | 12 | 6 | $1,375 |