Student Loans
William D. Ford Direct Unsubsidized Loan Program
A student's need is not a factor in determining eligibility for an Unsubsidized Loan. That is, students may qualify for an Unsubsidized Loan regardless of their own or their families' incomes.
Most federal student loans are interest free while the borrower is enrolled in school at least half time. The Unsubsidized Direct Ford Loan requires the borrower to be responsible for the interest that accrues each month, even while the borrower is in school. Interest is charged beginning the day the loan is paid to you until the day the loan is repaid in full. These charges will NOT be paid by the Federal Government. The interest rate on Unsubsidized Direct Loans is fixed at 6.8%. A statement of accrued interest will be sent to you around January 1 - July 1st.
You may pay the accumulating interest while you are in school or you have the option of capitalizing the interest. Capitalizing interest means adding unpaid, accumulated interest to the principal balance of the loan. Capitalization increases the total cost of your loan...if you choose to let your interest be capitalized, you will repay more money in total than if you pay the interest while you are in school. Whichever option you choose, you are responsible for paying the full amount of all interest on the Unsubsidized Loan.
Maximum Annual Loan Limits
(You may not be eligible for these maximum amounts)
| Undergraduate | Dependent Student | Independent Student |
|---|---|---|
| Sub + Unsub | Sub + Unsub = Total Amount | - |
| First-Year | $5500 | $3500 + $6000 = $9500 |
| Second-Year | $6500 | $4500 + $6000 = $10500 |
| Third-Year and Remaining | $7500 | $5500 + $7000 = $12,500 |
| Maximum Cumulative Amounts | $31,000 | Sub + Unsub = $57,500 |
| Graduate or Professional Student | $8500 + $12,000 = $20,500 | |
| Maximum Cumulative Amount: Undergraduate and Graduate |
Sub + Unsub = $138,500 | |
Additional information and an Unsubsidized Direct Ford Loan request form are available on our web site.
The Department of Education's Direct Loan Web Site provides an Interactive Budgeting Worksheet and Calculator that allows you to estimate your financial needs and create a budget for school and living expenses.
Frequently Asked Questions regarding the Direct Loan Program
