The Federal Unsubsidized Stafford (Direct) Loan is not based on need. Payment on the principal is deferred while the student borrower is enrolled at least half time. Interest is paid by the student borrower through quarterly payments, or if a student desires it can be added daily to the principal, to be repaid when the student ceases to be enrolled. Interest rates vary annually. The rate for 2018-19 is 5.045%.
Completion of the FAFSA is required for participation in the Federal Unsubsidized Stafford (Direct) Loan program.
Annual maximums for the Unsubsidized Stafford (Direct) Loans are:
| Dependent Freshman |
$5,500 |
| Dependent Sophomore |
$6,500 |
| Dependent Junior/Senior |
$7,500 |
| Independent Freshman |
$9,500 |
| Independent Sophomore |
$10,500 |
| Independent Junior/Senior |
$12,500 |
Note that the maximums include both subsidized and unsubsidized
loans. For example, an independent freshman who receives a $3,500
subsidized loan can borrow no more than $6,000 in unsubsidized loan.
Lifetime loan limits for all Stafford Subsidized and Unsubsidized (Direct) Loans are:
| Dependent undergraduate |
$31,000 |
| Independent undergraduate |
$57,500 |