Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. The U.S. Department of Education offers eligible students at participating schools Direct Subsidized Loans and Direct Unsubsidized Loans.
Federal Direct Subsidized Loans
The Federal Direct Subsidized Loan is a need-based loan awarded on information given on the FAFSA. The federal government pays the interest during certain times (for example, while the student is enrolled in school).
Subsidized Loan Details |
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Current interest rate: |
5.50% fixed |
| Net fee per disbursement: |
1.057% (for loans disbursed prior to October 1, 2024) |
| Grace period: | 6 months |
| Master Promissory Note | Required |
| Loan Entrance Counseling | Required |
Federal Direct Unsubsidized Loan
The Federal Direct Unsubsidized Loan is not contingent upon financial need; thus, the borrower is responsible for interest that accrues on the loan while in school.
Unsubsidized Loan Details |
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| Current interest rate: (Effective July 1, 2023) |
5.50% fixed (undergraduate) 7.05% fixed (graduate) |
| Net fee per disbursement: |
1.057% (for loans disbursed prior to October 1, 2024) |
| Grace period: | 6 months |
| Master Promissory Note | Required |
| Loan Entrance Counseling | Required |