Unsubsidized Federal Direct Loans are a non-need-based loan available to degree-seeking graduate students who maintain satisfactory academic progress and are enrolled in at least half-time status. During the period a student remains enrolled with at least half-time status, the interest accrued on this loan may be capitalized (added to the loan principal) or may be paid monthly or quarterly by the student.
Repayment of the loan by the student begins:
six months after graduation, or
upon early withdrawal, or
when enrollment status change to less than half-time.
For the current academic year, the maximum amount potentially awarded to a student in combined Unsubsidized Federal Direct Loans is $20,500. Effective October 1, 2016, the origination fee is 1.069% of the loan amount and the interest rate is 5.31%.
Students who expect to use Federal Direct Loan funds to cover all or part of the cost of tuition must have a loan guarantee in place at the time of registration. This requires the submission of a Free Application for Federal Student Aid (FAFSA) which may take 6-8 weeks to process. Please apply early.
If a student does not have a loan guarantee in place at the time of registration, that student will be responsible for paying a minimum of one-third of the total tuition charges upon registration and for establishing a payment schedule for the remaining tuition balance. The fee for setting up a payment schedule is $25 per quarter.
Direct Plus Loans (previously called Grad PLUS loans) are federal loans available to grad students. To be eligible for these alternative loans, one must have good credit. These loans have a higher interest rate at 6.84% and a higher origination fee of 4.276% of the loan. The interest rate is fixed for the life of the loan.