The unsubsidized Federal Stafford Loan Program provides long-term, low interest loans to undergraduate, graduate and professional students, similar to the subsidized Stafford Loan 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 interest rate is currently fixed. Loans disbursed on or after July 1, 2006, have a fixed interest rate of 6.8%. The interest rate on loans disbursed prior to July 1, 2006, was variable and set at 3.1 percentage points above the 91-day Treasury bill rate with an 8.25% cap. The interest rate on subsidized Federal Stafford Loans made prior to July 1, 1994, will vary according to the dates on which the loans were disbursed and/or the borrower's outstanding federal loan indebtedness. The interest rate during repayment will be different. These rates are subject to change by law. For specific information about the interest rate on your loans, please contact your lender.

As an undergraduate dependent student, you have additional unsubsidized eligibility of $2,000 per year. As an undergraduate independent student, you have an additional unsubsidized eligibility of $6000 per year for your first and second year of study, and $7000 for your third and fourth year of study. As a graduate or professional degree student, you have an additional $12,000 per year in unsubsidized eligibility, and your career maximum increases to a total of $138,500 including any amounts borrowed as an undergraduate. Medical students and graduate students in public health and clinical psychology may be eligible for additional unsubsidized loan limits. The interest rate is the same as the subsidized Stafford Loan; however, interest begins to accrue at the time the lender makes the loan and is not automatically deferred. You may choose to pay the interest or request that it be deferred. This results in the deferred interest being capitalized and creating a greater expense to you during repayment.

New Borrowers will receive a promissory note which must be signed, completed, and returned to your lender before any loan funds will be disbursed. If, however, you previously signed a Master Promissory Note, and you borrow from the same lender, your MPN may be used for all future Stafford Loans while attending USC. You will no longer need to sign a promissory note each year you apply for and receive a Stafford Loan.

Federal regulations require that we limit or reduce the amount of a Stafford Loan (subsidized and unsubsidized) under certain prescribed conditions. These conditions are as follows: (1) you are an undergraduate and you apply for a Stafford Loan and are enrolled less than a full academic year (fall and spring semesters) or (2) you 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. We will make this adjustment and send you a revised award letter.

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.