Federal Direct Unsubsidized Loan

The Federal Direct Unsubsidized Loan is designed to assist you in providing additional funds to meet the cost of funding your education when the federal need analysis requirements preclude you from borrowing under the subsidized loan program.

The interest rate is a 3.76% fixed rate.

The interest on a Federal Direct Unsubsidized Loan must be paid on a quarterly basis while you are enrolled in school, during the grace period following the in-school period, during any deferment period, and during repayment periods.

Repayment on the principal amount will begin six months after you cease to be enrolled at least half-time.

Deferments may be available to unsubsidized borrowers and are the same as those available for Federal Direct Subsidized borrowers.

The combined amounts borrowed under the Federal Direct Subsidized and Federal Unsubsidized programs cannot exceed the maximum annual levels of $5,500 for freshmen, $6,500 for sophomores, and $7,500 for juniors/seniors.

Unsubsidized loans are made throughout the United States and an origination fee of 1.069% is deducted from each disbursal to cover origination/insurance premiums.