Federal Direct Unsubsidized Stafford Loan
The purpose of the Federal Direct Unsubsidized Stafford Loan is to provide low-interest educational loans that enable a student to pay the cost of attendance at a public, private, or nonprofit college or university. The borrower is responsible for interest that accrues while in school, during a grace period, or during authorized periods of deferment or forbearance.
Eligibility Requirements:
- Be a U.S. citizen or an eligible non-citizen.
- Completed a FAFSA.
- Be enrolled at least half-time.
- Meet Satisfactory Academic Progress requirements.
- Complete a Master Promissory Note and Loan Entrance Counseling
- Must not owe a refund (also called an "overpayment") on any federal grant program or be in default or delinquent on a previously obtained federal student loan.
Annual Loan Limit
- First-year undergraduates ------------------ $6,000
- Second-year undergraduates --------------- $6,000
- Students considered dependent for financial aid may only borrow $2,000 more than the Subsidized loan amounts listed above from the Unsubsidized Loan Program.
Aggregate Loan Limit
- Lifetime limit for undergraduate students -- $57,500 (including up to $23,000 of Subsidized Direct Loans)
An origination fee is deducted from the proceeds of each loan disbursement. There are no guarantees or insurance premium fees. Interest accrues from the date the funds are issued until the loan(s) are paid in full. Interest is capitalized if it is not paid as it accrues.
Repayment of the loan begins six months after the student ceases to be enrolled at least half-time. The loan repayment schedule will call for a minimum monthly payment of $50 or an amount required to repay the loan plus accrued/capitalized interest within 10 years, whichever is greater. Borrowers may be eligible for the postponement of loan repayment under certain circumstances.