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: For loans first disbursed between 7/1/2013-6/30/2014 the interest rate is fixed at 5.41% for all graduate and professional borrowers, and 3.86% for undergraduate borrowers. For loans first disbursed between 7/1/2014-6/30/2015 the interest rate is fixed at 6.21% for all graduate and professional borrowers, and 4.66% for undergraduate borrowers.

Loan Origination Fees:

Beginning December 1, 2013, Federal Direct Lending will deduct a 1.072% origination fee on any new Federal Direct Subsidized and Unsubsidized Loans, and a 4.288% fee on any new 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:

  • 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)
  • See annual and aggregate loan limit page for more details

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.

Please contact our office at 913-588-5170 for more information or email us at financialaid@kumc.edu.

Last modified: Jun 05, 2014
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