Unsubsidized Direct Loan (Formerly Stafford Loan)

• NOT awarded on the basis of financial need but the FAFSA must be filed in order to obtain this loan; there is no qualifying income for parents or students; the student must be enrolled at least half-time.
• Unlike a subsidized Direct Loan, the student is charged interest from the time the loan is disbursed until it is paid in full, including in-school, grace and deferment periods. However, students typically have the option of compounding interest during these periods and adding that amount to the loan principal.
• Interest rate: Fixed at 4.29% for unsubsidized loans first disbursed between 7/1/2015 and 6/30/2016.
• Current loan limits: $5,500 (first year), $6,500 (second year), $7,500 (third and fourth years); maximum amount for dependent undergraduate students (total) = $31,000 (minus any subsidized amounts). Independent undergraduates and dependent students whose parents cannot get PLUS loans may be eligible to borrow additional funds.