Federal Direct Unsubsidized Loan

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 borrowers who have been offered a Direct Unsubsidized Loan 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.

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

Interest Rates and Origination Fees

Interest rates will vary depending on the date of disbursement and type of loan a student borrows. Origination fees of approximately 1% are deducted from the total amount of the loan. For loans disbursed between July 1, 2019, and June 30, 2020, the interest rate for undergraduates is 4.53% and 6.08% for graduates. Please click here for most recent information on interest rates and origination fees.