A Federal Direct Unsubsidized Loan is available to you through the William D. Ford Federal Direct Loan Program. It isn’t based on your financial need.
Borrowing & Interest Rates
The total amount that you can borrow in a Federal Direct Unsubsidized Loan cannot exceed your Estimated Cost of Attendance minus other aid received. In addition, the total Federal Direct Subsidized Loan and Federal Direct Unsubsidized Loan cannot exceed your annual maximum loan limit.
The interest rate on Federal Direct Unsubsidized Loans borrowed by undergraduate students between July 1, 2016 and June 30, 2017 is 3.76%, and the interest rate for graduate and professional students is 5.31%. The loan origination fee for loans borrowed between October 1, 2016 and Septemer 30, 2017 is 1.069%, and is deducted from your loan at the time of disbursement.
You’re charged interest on this loan from the time the loan is disbursed until it is paid in full. If the interest is allowed to accumulate, the interest will be added to the principal amount of the loan and increase the amount to be repaid.
How to Apply
To apply for a Federal Direct Subsidized Loan, you must complete the FAFSA. To be eligible, you must be enrolled for at least 6 hours per semester. If you’re eligible for a Federal Direct Unsubsidized Loan, it will be included on your Financial Aid Award Letter.
How to Accept, Reduce, or Decline Your Loan Offer
You can accept or decline a Federal Direct Unsubsidized Loan on your electronic Award Letter by selecting “Accept” or “Decline” in the dropdown box on the Award Letter Accept/Decline Awards page.
You can reduce your loan by selecting “Accept” in the dropdown box and entering a lower award amount in the “Partial Accept” field. If you wish to request loan changes, you should “Request Changes” on the Award Letter Information Request page.
A Direct Loan Master Promissory Note and Entrance Counseling session is required for Federal Direct Loans before the loan funds will be disbursed. In most cases, you’ll only be required to complete one master promissory note and one entrance counseling session during your college career.