The Federal Direct Unsubsidized 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 capitalized, i.e. added to the principle at the time the loan enters repayment. Interest rates vary annually, but the rate for the year the funds are borrowed is in effect for the life of that loan. The rate for 2025-26 is 6.39%.
Completion of the FAFSA is required for participation in the Federal Direct Unsubsidized Loan program.
Annual maximums for the Direct Unsubsidized 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 Direct Subsidized and Unsubsidized Loans are:
| Dependent undergraduate |
$31,000 |
| Independent undergraduate |
$57,500 |