Federal Direct Unsubsidized
Stafford Loans
A Federal Direct Unsubsidized Stafford Loan is not based on financial need.
It is available to you if you have not reached your annual
maximum loan limit combined with your Federal Direct Subsidized Stafford
Loan eligibility. The interest rate for Federal Direct Unsubsidized
Stafford Loans disbursed on or after July 1, 2009 is fixed at
6.8 percent. The interest on an Unsubsidized Stafford Loan is
the student’s
responsibility from the time the loan funds are sent to the university
until it is paid in full. The student can opt to allow the interest
to accumulate; however, it will be added to the principal amount
of the loan and increase the amount to be repaid. It is recommended
that the student contact the lender to make quarterly payments
on the interest.
Apply for a Federal Direct Unsubsidized Stafford Loan
To apply for a Federal Direct Unsubsidized Stafford Loan, you must complete the FAFSA.
To be eligible, you must be enrolled for at least six credit hours by the add/drop deadline each semester.
If you are eligible for a Federal Direct Unsubsidized Stafford Loan, it will be included
in your financial aid award package.
In order to receive a Federal Direct Unsubsidized Stafford Loan, you
must complete
a Master Promissory
Note (MPN)
before the loan funds will be disbursed. In most cases,
you will only be required to complete one MPN during your college
career.
Please note that it is not necessary to apply for both subsidized
and unsubsidized Stafford Loans separately if you have been awarded a combination
of both. Simply complete one MPN and UMBC will process your funds accordingly.
Reduce or Cancel a Federal Direct Unsubsidized Stafford Loan
If you would like to reduce or cancel this loan after you have
applied through a lender, you must inform our office by completing
the Loan Decrease/Cancel Request
Form, also located on our
web site under Forms. Please
submit this form to our office for processing well before your
funds are set to disburse to your billing account in order to
avoid complications with the return of these funds.
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