Student Affairs
Federal Direct Unsubsidized Stafford Loans (FDUSL)
Unsubsidized Stafford Loans are non-need-based loans with a fixed interest rate of 6.8% for students who do not qualify, in whole or in part, for subsidized Stafford Loans. “Unsubsidized” means that the interest is not deferred while you are in school. However, repayment may be deferred until after students graduate, withdraw or enroll less than half-time. Because unsubsidized loans are not need-based, you may be able to borrow funds over and above your eligibility for subsidized Stafford Loans, either up to your cost of attendance minus other aid or up to Federal Direct unsubsidized Stafford Loan limits, whichever is less.
Graduate students may borrow $20,500 per year less amounts borrowed through the subsidized Stafford program, up to $138,500 cumulative total, including undergraduate loans, less amounts already borrowed through the subsidized Stafford program.
Borrowers must pay a 2.5% origination fee, which is deducted from each disbursement. An up front interest rebate of 1.5% will be given to Stafford borrowers who make their first twelve required monthly payments on time.
Because the federal government does not pay the interest while you are in school, you must pay all interest that accrues while you are in school, during the grace period, and during any periods of authorized deferment. You will have the following options: (1) making monthly or quarterly payments to the federal loan servicer, or (2) you and the federal loan servicer may agree to add the interest to the principal of your loan-capitalization. The disadvantage of capitalizing interest is that you pay more interest over the life of the loan because you are also paying interest on the accrued interest.