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Federal Direct Unsubsidized Ford Loan

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.

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 taken out for the academic year of July 1, 2017 thru June 30, 2018 is fixed at 4.45% for undergraduates and 6.0% for graduate students.   A statement of accrued interest will be sent to you in January and again in July.

You must accept the loan in Self Service before we can process the funds for you.  First time borrowers are also required to sign a master promissory note and complete a Loan Entrance Counseling on the web before loan funds may be disbursed.  The master promissory note and the Loan Entrance Counseling are available on the Federal Student Aid website at .  You will need your FSA ID to sign in.

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 -
Freshman Status $5500 $3500 + $6000 = $9500
Sophomore Status $6500 $4500 + $6000 = $10500
Junior Status and Remaining $7500 $5500 + $7000 = $12,500
Maximum Cumulative Amounts $31,000 Sub + Unsub = $57,500
Graduate or Professional Student  $20,500
Maximum Cumulative Amount:
Undergraduate and Graduate
Sub + Unsub = $138,500


An origination fee is charged by the federal government on these loans.  Loans disbursed before October 1, 2017 have a loan fee of 1.069%.  Loans disbursed after October 1, 2017 will have a loan fee of 1.066%,  Consequently, the fee on a $5,500 loan will be approximately $59, the amount you would receive would be aproximately $5,441.

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