• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

FCAA

The Financial Counseling Association of America

Find a Credit Counseling Agency

Service Request Widget

Get Help… 1-800-450-1794

  • Services
    • Debt Freedom Tool
    • Debt Help
    • Debt Management Plans (DMP)
    • Housing Counseling
    • Credit Report Reviews
    • Bankruptcy Certificates
    • Financial Education
    • Student Loan Counseling
      • Why Choose Us?
      • Student Loan Repayment Plans
      • How to Pay for College
  • About
    • About FCAA
    • Join FCAA
    • my FCAA
  • Find A Credit Counselor
  • 2023 FCAA Conference
  • Consumer Advice
  • Student Loan Training
  • Contact
    • Press
    • Affiliate Program
  • my FCAA
    • About my FCAA
    • Login

Direct Unsubsidized Loans

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

Primary Sidebar

Paying for College

  • Financial Aid Application Process
  • Financial Aid Timeline
  • Financial Aid Awards
  • Rights & Responsibilities
  • Student Loan Types
  • Direct Subsidized Loans
  • Direct Unsubsidized Loans
  • Perkins Loans
  • PLUS Loans for Parents
  • PLUS Loans for Graduate or Professional Students
  • Private or Alternative Loans
  • Institutional Loans
  • State Loans

Copyright © 2023 · FCAA · site by iKnow

Font Resize
Contrast
Accessibility by WAH