|What is it?||A long-term federal loan which students begin to repay six months after they graduate or drop below half-time enrollment. The interest rate for graduate students is fixed.|
|Who qualifies?||The student must be enrolled at least half-time per term; be enrolled in classes that count for the degree. The student must be a U.S. citizen or an eligible non-citizen; males must have registered for the Selective Service.|
|Loss of Subsidized Loan||President Obama signed the Budget Control Act into law August 2, 2011. This legislation made two significant changes to the graduate loan program. Effective with the 2012-2013 academic year, graduate students are no longer eligible for SUBSIDIZED loan funds. Subsidized loans were loans that the federal government paid the interest while the student was enrolled in school and at times of deferment. Going forward, all federal loans will be unsubsidized for graduate students. The Loan Rebate was also eliminated.|
An unsubsidized loan is when the student is responsible for the interest while enrolled in school. Interest begins to accrue on the day that funds are disbursed. The interest can be paid quarterly or capitalized and added to the loan principal.
|How much can I borrow?||
Graduate students may qualify up to $20,500 of unsubsidized funds per academic year from the Federal Direct Unsubsidized Loan program. In most circumstances, students will apply for the entire academic year at one time. The loan will disburse equally each term. A student needs to reapply each academic year.
Graduate students may borrow up to a lifetime amount of $138,500 from the Federal Direct Unsubsidized Loan program.
|Is there a fee for my Direct Loan?||
Students pay an Origination Fee to the Department of Education. The fee is a percentage of the amount borrowed. Fees are deducted before the loan is disbursed into the student's account.
|How do I apply?||
There are four steps for to apply for a Federal Direct Unsubsidized Loan.
For additional information, please read Masters Degree; Federal Direct Loans; Information, Guidelines, and Policy