Federal Direct Unsubsidized Stafford Loan
A Federal Direct Unsubsidized Stafford Loan is a loan that is available to all students regardless of income and is not based on financial need. Interest is charged during all periods. Because this loan is not subsidized by the government, you are responsible for all interest that accrues while you are in school, in deferment or during your grace period. You may choose to make interest payments while in school or you may defer (and continue to accumulate) the interest until repayment.
Federal Direct Unsubsidized Stafford Loans are low-interest loans for students to help pay for the cost of their education after high school. The lender is the U.S. Department of Education rather than a bank or other financial institution. Direct Loans are:
- Simple - You borrow directly from the federal government and have a single contact-the Direct Loan Servicing Center - for everything related to the repayment of your loans, even if you receive Direct Loans at different schools.
- Convenient - You'll have online access to your Direct Loan account information 24 hours a day, 7 days a week.
Flexible - You can choose from several repayment plans that are designed to meet the needs of almost any borrower, and you can switch repayment plans if your needs change.
In order to be eligible you must be enrolled at least half-time. The total borrowed from both Subsidized and Unsubsidized Stafford may not exceed $3,500 for freshman or $4,500 for sophomores. Independent students may borrow up to an additional $6,000 per academic year. Lower loan amounts apply if you are attending clock hour programs.
The interest rate as of 7/1/08 is at a fixed rate of 6.80 percent.
In addition to interest, you pay a loan fee of 2% of the principal amount of each Direct Unsubsidized Stafford Loan that you borrow. This fee helps reduce the cost of making these low-interest loans. The fee is deducted before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to repay.
A Student Loan Request Form is required in addition to the FAFSA, Entrance Counseling and Master Promissory Note.
- Click here to complete the FAFSA (Required)
- Click here to complete the Entrance Counseling (Required)
- Click here to complete the Master Promissory Note (Required)
- Click here to complete the Student Loan Request Form (Required)