Federal Loans
Federal loan options at CMU include Federal Direct Student Loans for undergraduates, Federal Direct Parent PLUS Loans for parents of undergraduates, and Federal Direct Grad PLUS Loans for graduate students.
Read on to learn more about the different types of federal loans and application instructions, as well as origination fees, interest rates, borrowing limits and more.
Federal Direct Student Loan
The Federal Direct Subsidized and Unsubsidized Loans are the most widely-used loans for college students and are available to both undergraduate and graduate students. Subsidized Loans are available to undergraduate students with financial need. Unsubsidized Loans are available to some undergraduate and graduate students and are not based on financial need. Consideration for these loans is determined by completing the FAFSA.
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Federal Direct Parent PLUS Loan
The Federal Direct Parent PLUS Loan is a financing option for parents of undergraduate students. It is a non-need-based loan provided by the Department of Education and is based on credit-worthiness. Parents may apply for any amount up to the annual cost of attendance minus any additional financial aid offered.
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Federal Direct Grad PLUS Loan
Eligible graduate students may borrow a Federal Direct Grad PLUS Loan to assist with educational costs. Students may borrow any amount up to their calculated cost of attendance minus any other financial aid offered.
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Schedule of Reduction for Federal Student Loans (Less Than Full-Time Enrollment)
Beginning with the 2026-2027 academic year, federal regulations require schools to reduce certain federal student loans when a student is enrolled less than full time for the academic year. This process is called the Schedule of Reduction.
Students enrolled full time for their academic year are eligible to receive up to their full annual federal loan limit, subject to all other federal eligibility requirements.
How Carnegie Mellon Calculates Your Reduced Loan Eligibility
Your reduced annual loan amount is calculated based on your number of enrolled units for the academic year divided by the number of units considered full time for your program’s academic year. This is your Schedule of Reduction Percentage. At Carnegie Mellon, full-time enrollment is 36 units per semester for undergraduates and typically 36 units per semester for graduate students. Students enrolled below full time will have their annual loan eligibility reduced based on their enrollment level.
Carnegie Mellon uses a proportional distribution method to determine your annual federal loan eligibility. Your loan amount is based on your enrollment level during the academic year. If you are enrolled in a different number of units each semester, your federal loan amounts may not be evenly divided between fall and spring (see example below).
When Your Loan Amount Will Be Adjusted
For most students, Carnegie Mellon will review enrollment after the semester add/drop deadline (10th day of classes) and calculate any required reduction for students enrolled less than full time.
Because the reduction is calculated after the add/drop period:
- Your initial financial aid offer may not reflect the final reduced loan amount.
- Loan funds will not be applied to your student account until the Schedule of Reduction calculation is completed.
Minimum Enrollment Requirement
To receive federal student loans for a semester, you must be enrolled at least half time. At Carnegie Mellon, half-time enrollment is 18 units per semester. If you enroll in fewer than 18 units, you are not eligible to receive federal student loans for that semester.
Graduate PLUS Loans
Graduate PLUS Loans are also subject to the Schedule of Reduction and may be reduced based on your enrollment level.
Students must meet the interim exception requirements to be eligible for a Graduate PLUS Loan. Eligible students may borrow up to their cost of attendance, minus other financial assistance received.
Example of Schedule of Reduction
- Full-time enrollment for the academic year = 72 units
- 54 ÷ 72 = 75% Schedule of Reduction Percentage
This means the student would be eligible to borrow approximately 75% of their annual federal loan limit.
Reduced Annual Loan amount based on Schedule of Reduction Percentage:
- Graduate Unsubsidized Loan:
$20,500 annual limit → approximately $15,375 eligible amount - Second-Year Undergraduate Subsidized Loan:
$4,500 annual limit → approximately $3,375 eligible amount
Proportional Distribution based on 30 units in the fall semester and 24 units in the spring semester:
Reduced Graduate Unsubsidized Loan of $15,375 based on 54 units
-
Fall Loan Amount: 30 fall units ÷ 54 units enrolled for the academic year → multiplied by $15,375 → approximately $8,542 eligible amount
-
Spring Loan Amount: 24 fall units ÷ 54 units enrolled for the academic year → multiplied by $15,375 → approximately $6,833 eligible amount
Reduced Undergraduate Subsidized Loan of $3,375 based on 54 units
- Fall Loan Amount: 30 fall units ÷ 54 units enrolled for the academic year → multiplied by $3,375 → approximately $1,875 eligible amount
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•Spring Loan Amount: 24 fall units ÷ 54 units enrolled for the academic year → multiplied by $3,375 → approximately $1,500 eligible amount