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, 2011 is fixed at 6.8 percent. A 1% origination fee will be deducted before the loan proceeds are sent to the school. 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
The Stafford loan process is a two-step process:Step 1- Complete a Federal Direct Stafford Loan Master Promissory Note
Step 2- Complete the Stafford Loan Entrance Counseling
In 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.