Please keep in mind, before you may receive an Unsubsidized Federal Direct Ford Loan, you must file a Free Application for Federal Student Aid (FAFSA) for the current year, and the UW-Eau Claire financial aid office must receive the results. If you are not sure if this process is complete, you can check your financial aid status on MyBlugold.
An unsubsidized Direct Ford Loan, unlike other federal student loan programs, is not based on financial need. That is, students may qualify for an Unsubsidized Direct Ford Loan regardless of their own or their families' income and assets. Also, unlike most federal student loans that are interest-free while the borrower is enrolled in school at least half time, the William D. Ford Federal Direct Unsubsidized Loan Program (UFDL) accrues interest, even while the borrower is in school. Interest is charged beginning the day the loan is paid to the student until the day the loan is repaid in full. The interest rate on Unsubsidized Direct Ford Loans is fixed at 6.8%.
The amount of interest the borrower is charged each month depends upon the amount borrowed. The interest you pay will not reduce the principal of your loan. You do not, however, have to repay the principal while you are a student. The Direct Loan Service Center will provide you with an interest statement around January 1 - July 1st.
Important Notes:
- A 1/2 % origination fee is charged by the federal government on these loans. Consequently, your net loan check will be 99.5% of what you requested in the loan.
To begin the application process for a UFDL, you must first complete the Free Application for Federal Student Aid (FAFSA). This is a federal requirement and must be done every year you apply for a UFDL, even if you do not think you will qualify for other need based aid. Then, once you have received your Student Aid Report from the Federal Processor, have been notified by the UW-Eau Claire Financial Aid Office regarding your financial aid eligibility, and have decided to borrow under the UFDL program, you may print and complete the
*This form may only be used to request an unsubsidized Ford Loan for fall and/or spring semester. If you are interested in a UFDL for winterim or summer, you must contact the financial aid office at 715-836-3373 for assistance.
Return the completed form to the Financial Aid Office at:
University of Wisconsin-Eau Claire
Financial Aid Office
PO Box 4004
Eau Claire, WI 54702-4004
Once the Financial Aid Office receives your request and confirms your eligibility, you will be notified (usually by e-mail) concerning the amount of UFDL that has been processed for you. If you are a first time UFDL borrower, you will also be sent instructions for completing the promissory note and the required Direct Loan entrance counseling on the web.
UFDL is an option that may be right for you, but be aware that it requires careful management of interest payment options. Please do not hesitate to contact the UW-Eau Claire Financial Aid Office at 715-836-3373 or finaid@uwec.edu if you have questions or concerns about this type of loan. If you have additional questions regarding the Unsubsidized Direct Ford Loan, you may also review Direct Loan Publications for Students on the Dept. of Education's Direct Loan website.
