Unsubsidized Federal Direct Loan
Graduate students who are enrolled in at least six graduate credits per semester are eligible to borrow up to $20,500 per academic year in an Unsubsidized Federal Direct Stafford Loan. With the unsubsidized loan, the borrower is responsible for the interest that accrues on the loan even during periods of enrollment.
Students who are borrowing funds for the first time must complete a Federal Direct Loan Entrance Counseling before receiving loan proceeds. The Entrance Counseling is designed to inform borrowers of the rights and responsibilities inherent in borrowing from this Program. The Office of Financial Aid will notify borrowers of the procedures for completing the Entrance Counseling.
The amount of the loan funding that arrives at the College will be less than the amount for which you have applied as the Federal Government retains an origination fee.
All new Federal Direct Loan borrowers must complete a Master Promissory Note (MPN). The Office of Financial Aid will notify borrowers of the procedures for completing the MPN. The MPN is valid for up to ten years of educational borrowing.
Loans covering more than one semester must be disbursed in multiple disbursements. If the loan is intended for the Fall and Spring semesters, the first half of the loan proceeds will be disbursed at the beginning of the Fall semester and the second half at the beginning of the Spring semester. If the loan is intended for one semester only, the loan will be disbursed at the beginning of the term.
The College is required to reaffirm applicants’ eligibility for the Federal Direct Loan prior to disbursing the proceeds to students’ accounts. If, at the time that the College receives the loan disbursement, eligibility has changed for any reason, the College may be required to return some or all of the proceeds to the lender. In such cases, the borrower will be responsible for the student account balance that may result.
When borrowers cease to be enrolled for at least six credits, they are required to complete an Exit Interview. The Exit Counseling is a final reminder of borrowers’ rights and responsibilities as they prepare to enter repayment. The Office for Financial Aid will inform borrowers of the procedures for completing the Exit Interview process.
Keep in mind, however, the borrower is responsible for the interest that accrues on the Unsubsidized Federal Direct Loan while in school, during the grace period and when in deferment.