Federal Direct Unsubsidized Loan

The unsubsidized loan is NOT based on financial need. The student is responsible for paying the interest, which begins accruing as soon as the loan is disbursed. There is a 6 month grace period after graduation or dropping below half-time before repayment is required. The unsubsidized loan DOES accrue interest while the student is in school. Students can make interest payments or let the interest capitalize.

Deadline: Apply during the current academic year

Application: Must have completed the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov and the Federal Direct Loan Application/Master Promissory Note at www.studentloans.gov

First time borrowers at KUMC must complete the online entrance counseling at www.studentloans.gov

Interest Rates: The interest rate is fixed at 6.8% for all borrowers, undergraduate and graduate. (fixed after July 1, 2006)

Loan Origination Fees:

Beginning July 1, 2012, the upfront interest rebate will no longer be offered on any Federal Direct Loan. Federal Direct Lending will deduct a 1% origination fee on Federal Direct Subsidized and Unsubsidized Loans, and a 4% fee on Federal Direct Parent PLUS and Graduate PLUS Loans.

Does the unsubsidized loan have to be repaid? Yes. Repayment begins 6 months after graduation or dropping below half-time.

Award Maximum: The maximum Federal Direct Unsubsidized Loan is determined by taking the amount below and subtracting any Federal Direct Subsidized Loan from the total.  For example, if you are a graduate student and you have received a $8,500 Federal Direct Subsidized Loan, you will be eligible for $12,500 in a Federal Direct Unsubsidized Loan.  ($20,500 - $8,500 =  $12,500)

• Dependent Undergraduate students $7,500
• Independent Undergraduate students $12,500
• Graduate students $20,500 MPH/MHS students $33,000 (MPH/MHS student enrolled for more than 9 months may be eligible for additional funds)
• Medical Students $40,500  (third and fourth year medical students enrolled for more than 9 months may be eligible for additional funds)

Need based: No

Enrollment: Must be enrolled at least half-time. For specific information on undergraduate and graduate enrollment please read KUMC's Enrollment Information.