Federal Direct Unsubsidized Graduate Student Loan

The Federal Direct Unsubsidized Student Loan is a federal loan with a low interest rate for Graduate students attending accredited colleges and universities. This is the primary financial aid source for Graduate students.

• Federal Direct Unsubsidized Student Loan
  • Students must complete the FAFSA to have their eligibility determined for this loan.
  • The interest rate is 8.08% for new loans disbursed on or after July 1, 2024.
  • The U.S. Department of Education does NOT pay interest on this type of loan and the interest will start accruing on the date of your first disbursement.
  • Students may pay interest while in school but have the option to defer paying the interest until the loan goes into repayment.
  • This loan goes into repayment once you have dropped below a half-time enrollment status.
  • There is a loan fee on this federal loan and the fee will be deducted from each loan disbursement before the school receives the loan. The amount of the loan fee for loans first disbursed on or after October 1, 2020 and is 1.057%.
• Maximum Loan Amount You Can Borrow
  • The Maximum Total Loan Amount per Academic Year (up to Cost of Attendance) = $20,500.
  • Maximum Total Debt allowed from Federal Direct Student Loans (Undergraduate + Graduate) = $138,500 with a maximum $65,500 in Direct Subsidized Student Loans
• Steps to Complete to Borrow This Loan
  • The loan will be listed on your Financial Aid Award Notification if you filed the Free Application for Federal Student Aid (FAFSA) and you are eligible to borrow this federal student loan.
  • TWO steps need to be completed for the loan to be applied to your Bursar’s account. These steps are completed at the Federal Student Aid website https://studentaid.gov/. To access the website, use the FSA ID (username and password) you use for the FAFSA.
    • Step 1: Student Loan Entrance Counseling - This is a learning tool which lets you know your rights and responsibilities as a federal student loan borrower. To complete this step visit: https://studentaid.gov/app/counselingInstructions.action
    • Step 2: Sign a Master Promissory Note – This legal document is your commitment to repay the loan(s) you borrow. To complete this step visit: https://studentaid.gov/app/launchMpn.action?mpnType=gradPlusMpn
  • After all requirements have been met and appropriate documents submitted, the Financial Aid Office will process the loan you accepted on your Financial Aid Award Notification.
  • Once the loan is processed, the U.S. Department of Education will place your loan with a federal loan servicer which is a company that handles the billing and other services on your federal student loan(s). Your loan information will be accessible to authorized users of the system.
  • To view your processed loans login to the Federal Student Aid website using your FSA ID you used for your FAFSA.
• Loan Repayment
  • The following link offers important information about Repaying Your Loans. Repayment plans and calculators are available as well as information on Postponing Repayment (Deferment, Forbearance), Public Service Loan Forgiveness, Cancellation, and Consolidation.
  • You can estimate your monthly payments using the Loan Simulator.
• Contact Information to Resolve Loan Issues
  • The Student Loan Ombudsman’s Office has been established by the Dept. of Education to resolve problems between you and your school, lender, guarantor, and loan servicer.
  • Contact Information for the Ombudsman:
    Online: https://studentaid.gov/feedback-center/
    Telephone: 1-800-433-3243
    Fax: 606-396-4821
    Mail: U.S. Dept. of Education, FSA Ombudsman Group, P.O. Box 1854, Monticello, KY 42633