Unsubsidized Federal Stafford Student Loan
(Non-need based)*

*Non-need based aid eligibility is the calculated difference between cost of attendance and other expected financial aid.

The unsubsidized Federal Stafford  Loan is a funding alternative for borrowers who do not qualify for the maximum subsidized Stafford Loan, or, for those borrowers who require funding beyond the $8,500 subsidized loan. Interest is not subsidized by the federal government and begins to accrue from the date of disbursement. Borrowers may either pay the interest as they go or allow it to accrue and capitalize (be added to the principal). Accrued interest will capitalize at the end of the six-month grace period following graduation.

Maximum Loan: Combined subsidized and unsubsidized Stafford Student Loan cannot exceed the lesser of $40,500 (adjusted for any academic year greater than nine months) or the cost of attendance minus other aid per academic year; $189,125 cumulative undergraduate and graduate unsubsidized borrowings.

Loan Fees: 3% of the loan amount approved will be deducted from the loan proceeds at the time of disbursement.  

Interest Rate:  6.8% Fixed Rate for all unsubsidized loans disbursed after July 1, 2006. Interest accrues from the date of disbursement and is the responsibility of the borrower.

For unconsolidated unsubsidized loans disbursed prior to July 1, 2006, the rate is variable tied to the 91-day Treasury Bill plus 1.7% during in school, grace and deferment periods; and Treasury Bill plus 2.3% during repayment. Interest is capped at 8.25%. The variable rate is adjusted annually and will change July 1 of each year throughout the life of the loan.

Grace Period: Borrowers will automatically receive six months of grace immediately following graduation or withdrawal from school. No payments are expected during the grace period. However, interest on the unsubsidized Direct Loan will continue to accrue and will be added to the principal at the end of the grace period.

Deferment Options: Once repayment begins, borrowers are entitled to a deferment if they meet any one of the requirements below. The borrower must request deferment on a form provided by the lender and provide documentation in support of the deferment request. For more detailed information regarding deferment requirements, see the booklet provided at the Loan Entrance Interview you attend/attended during First-Year Orientation or see your financial aid counselor.

Note: Interest on unsubsidized Direct Loans continues to accrue during deferment and, unless paid by the borrower, will be capitalized at repayment.

  • Periods of unemployment (cumulative 24-month limit)
  • Full- or half-time study at an eligible school (no limit)
  • Residency training (only those borrowers who received a Stafford loan prior to 7/1/93; 2-year maximum deferment)
  • Graduate Fellowship (lender must approve eligible program - no limit)
  • Rehabilitation training (no limit)
  • Economic Hardship - (only those borrowers who received their first Stafford Loan after July 1, 1993; borrower must meet the federal definition of hardship; 36-month limit)
  • Unable to find full-time employment (36-month limit)

Residency Forbearance: After having exhausted eligible deferment, borrowers may request residency forbearance for any years of residency training remaining. No payment of principal or interest is required during the forbearance period, however, interest continues to accrue and, unless paid by the borrower, will be capitalized at repayment.

Repayment: Standard repayment allows 10 years excluding periods of grace, deferment and/or forbearance.