Body
Issue/Question
What is a Federal Direct Unsubsidized Loan?
Environment
- Federal Loans
- Financial Aid
Resolution
Note: An Unsubsidized Loan is a type of loan that the government does not pay the interest while the student is enrolled
- The student has the option to either pay the accruing interest monthly or allow the interest to capitalize (to be added to the principal).
- Required payments do not begin until six months after graduation or six months after the student drops below half-time enrollment.
- For the 2019-2020 academic year, the interest rate on
- Undergraduate Unsubsidized Direct Loans is 4.529% for loans first disbursed on or after July 1, 2019 through June 30, 2020
- Graduate Students is 6.079%.
- There is currently a 1.062% origination fee that is deducted by the federal government on the loan proceeds