Eligible Borrowers
Students must be U.S. citizens or eligible non-citizens and be enrolled at least half-time in a qualifying program. Unlike with subsidized loans, borrowers do not need to show financial need to qualify for direct unsubsidized loans.
Repayment Terms
- While in school, interest will continue to accrue on the loans.
- Loans enter repayment 6 months following the borrower’s initial graduation, withdrawal, or drop to less than half-time enrollment.
- Upon entering repayment, loans are set to a Standard 10 year repayment term. Borrowers can switch to an alternative repayment plan if necessary.
- In some circumstances, the borrower can qualify for a deferment where loan payments are postponed for a period of time. During deferment, interest will continue to accrue.
- A borrower may be able to request a forbearance to temporarily stop payments. During forbearance, interest will continue to accrue, and any unpaid interest may be capitalized.
- There are no prepayment penalties for borrowers who choose to pay off their loans ahead of time.
Current Interest Rate
For Undergraduate Students:
| Direct Unsubsidized Loans first disbursed on or after 7/1/2013 and before 7/1/2014 | 3.86% |
| Direct Unsubsidized Loans first disbursed on or after 7/1/2014 and before 7/1/2015 | 4.66% |
For Graduate Students:
| Direct Unsubsidized Loans first disbursed on or after 7/1/2013 and before 7/1/2014 | 5.41% |
| Direct Unsubsidized Loans first disbursed on or after 7/1/2014 and before 7/1/2015 | 6.21% |
Loan Limits for Direct Subsidized and Unsubsidized Loans
Undergraduate dependent students may qualify for a certain limit in Direct Subsidized and Unsubsidized Loans. Undergraduate independent students and dependent students with parents unable to borrow a PLUS loan can qualify for additional unsubsidized loans. See the table below for a breakdown of loan limits.
| Year | Dependent Students excluding students with parents ineligible for PLUS Loans | Independent Students & dependent undergrad students with parents ineligible for PLUS Loans |
| 1st Year Undergraduate Annual Loan Limit | $5,500 (not to exceed $3,500 in subsidized loans) | $9,500 (not to exceed $3,500 in subsidized loans) |
| 2nd Year Undergraduate Annual Limit | $6,500 (not to exceed $4,500 in subsidized loans) | $10,500 (not to exceed $4,500 in subsidized loans) |
| 3rd Year & Beyond Undergraduate Annual Limit | $7,500 (not to exceed $5,500 in subsidized loans) | $12,500 (not to exceed $5,500 in subsidized loans) |
| Graduate/ Professional Students Annual Limit | N/A | $20,500 (only unsubsidized) |
| Subsidized & Unsubsidized Aggregate Limit | $31,000 (not to exceed 23,000 in subsidized loans) | $57,500 for undergraduates(not to exceed 23,000 in subsidized loans)
$138,500 for graduate or professional students (not to exceed $65,500 in subsidized loans) The graduate aggregate limit includes all federal loans received for undergraduate education |