The Federal Direct Unsubsidized Loan Program provides long-term, low interest loans to undergraduate, graduate and professional students. It is similar to the subsidized Federal Direct Loan Program except that eligibility is not based on financial need and interest payments are not subsidized by the federal government, but rather are the responsibility of the borrower.

The Federal Direct Unsubsidized Loan Program had been disbursed through the Federal Family Education Loan Program (FFELP) prior to the 2010-11 academic year, when the program was switched to the Federal Direct Loan Program.

Interest begins to accrue at the time of the first disbursement and is not automatically deferred. You may choose to pay the interest or request that it be deferred, which will result in the deferred interest being capitalized and creating a greater expense to the borrower during repayment. The Federal Direct Unsubsidized Loan Program disbursed on or after July 1, 2006 have a fixed interest rate of 6.8%. For specific information about the interest rate on your loans, please contact your lender.

Undergraduate dependent borrowers have additional unsubsidized eligibility of $2,000 per year above their base eligibility with a career maximum of $31,000. Undergraduate independent borrowers have an additional unsubsidized eligibility of $6000 per year for the first and second years of study, and $7000 for the third and fourth year of study above their base eligibility with a career maximum of $57,500. As a graduate or professional degree student, borrowers may borrow a career maximum of $138,500 including any amouonts borrowed as an undergraduate. Medical students and graduate students in public health and clinical psychology may be eligible for additional unsubsidized loan limits.

New borrowers must sign a master promissory note and complete entrance loan counseling before any loan funds will be disbursed.

Federal regulations require the limitation or reduction of the amount of an unsubsidized or subsidized Federal Direct Loan under certain prescribed conditions. These conditions are as follows: (1) the borrower is an undergraduate, applies for a Stafford Loan and is enrolled less than a full academic year (fall and spring semesters) or (2) the borrower will complete all degree requirements at the end of the semester or term. If both of these conditions occur, the Stafford Loan amount may be reduced and the borrower will be sent notification to review the revised award letter on VIP.

We are required to disburse your loan in at least two installments generally to coincide with the beginning of the enrollment period covered by the loan. Equal installments of your loans will be disbursed at the start of each semester if your loans cover multiple semesters. A loan that covers only one semester or term, however, will be disbursed in full at the beginning of the semester or term.

Additionally, if after the time your Federal Stafford Loan, (subsidized or unsubsidized) was certified, you receive any type of other financial assistance, or your tuition fee structure changes, your eligibility for the Stafford Loan may be reduced. In some cases, you may be required to repay amounts in excess of your eligibility.

For more information about unsubsidized Stafford Loans, including how to apply, click here.