Federal Direct Unsubsidized Stafford Loans
A Federal Direct Unsubsidized Loan is not based on your financial need. It is available to you through the William D. Ford Federal Direct Loan Program, if your Estimated Cost of Attendance (COA) is greater than your financial aid and you have not reached your annual maximum loan limit through the Federal Direct Subsidized Loan. The interest rate for Federal Direct Unsubsidized loans disbursed on or after July 1, 2006 is fixed at 6.8%. You are 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.
Apply for a Federal Direct Unsubsidized Loan
To apply for a Federal Direct Unsubsidized Loan, you must complete the FAFSA. To be eligible, you must be enrolled for at least six hours per semester. If you are eligible for a Federal Direct Unsubsidized Loan, it will be included on your financial aid award letter.
Accept a Federal Direct Unsubsidized Loan
Federal Direct Unsubsidized Loans are not automatically accepted, unlike Federal Direct Subsidized Loans. To accept the Unsubsidized Loan, complete section 4 on the back of your award letter, sign, and return it to OSFA. A Master Promissory Note (MPN) and Entrance Counseling are required for Federal Direct Loans before the loan funds will be disbursed. In most cases, you will only be required to complete one MPN and complete one entrance counseling session during your college career.
Reduce or Reject a Federal Direct Unsubsidized Loan
If you would like to reduce or reject the loan, you must inform OSFA by completing section 4 on the back of your award letter, sign, and return it to OSFA.
