Federal Direct Unsubsidized Loans are not based on financial need. Interest is charged from the date of the first disbursement and is accumulating during all periods including while enrolled in school and during the grace period.

  • Interest can be paid while in school or it can accumulate and be capitalized at the time of repayment.
  • First-time loan borrowers need to complete a Master Promissory Note (MPN).
  • First-time loan borrowers must also complete entrance loan counseling before any loan proceeds can be disbursed.
  • Repayment begins 6 months after the borrower graduates, leaves school, or drops below half-time status.
  • Repayment may be deferred or modified under certain conditions. There are several repayment plans.
  • The amount an undergraduate or graduate student can borrow is based on the estimated cost of attendance, other financial aid received, grade level, and the aggregate limits established by the federal government.

Find additional information on Federal Direct Loans at the U.S. Department of Education website.

Interest Rates and Origination Fees

Interest rates depend on the loan type, whether the borrower is an undergraduate or graduate student, and the first disbursement date of the loan. Origination fees of approximately 1% are deducted from the total amount of the loan. Please click here for the most recent information on interest rates and origination fees.