Federal Direct Unsubsidized Loans are federally regulated student loans.
Students who do not demonstrate financial need may want to consider borrowing through this program.
Federal Direct Unsubsidized Student Loans are available to students regardless of need. The government does not pay the interest on a Direct Unsubsidized Student loan. Students are responsible for repaying interest that begins accruing as soon as the loan is taken out. You are not required to pay the accumulating interest while in school, during the six-month grace period after school, and during a period of deferment if you are having financial trouble after graduation. You can pay interest as you go (request to receive interest only statements from federalstudentaid.gov) or allow interest to accrue until your education is complete. But if you choose not to pay, it will be added to the principle amount of your loan.
The maximum Federal Direct Student Loan amounts are $5,500 for the first-year, $6,500 for sophomore year, and $7,500 per yer for junior and seniors, based on credit hours earned. The fixed interest rate and origination fee are set by the federal government each year. The U.S. Department of Education is the lender, though the entity you deal with – your loan servicer – can be a private business. Student Aid website.
For information regarding loan types, interest rates, fees, and repayment, go to the Federal Student Aid website.
To apply for a Federal Direct Student Loan:
- Complete a Free Application for Federal Student Aid (FAFSA) online at FAFSA’s website.
- Request a Federal Direct Student Loan by contacting our office. This request must be completed each year that you wish to borrow.
Compare Your Options
Financial Comparison Worksheet
We encourage you to use our Financial Planning Comparison Worksheet to estimate your monthly payments and compare payment and financing options.Financial Comparison Worksheet
Financial Information for Parents and Families
For more information on the different financing options available to you, please view our Financial Information for Parents & Families Brochure.