The Unsubsidized Federal Direct Loan is available to students who are ineligible for a Subsidized Federal Direct Loan. Undergraduate students may receive a loan up to the amount of need, but not more than

• $3,500 for first year student
• $4,500 for a sophomore level student
• $5,500 for a junior or senior level student

up to a maximum of $23,000. An origination fee of up to 0.5% may be deducted from the proceeds of the loan. The student borrower is responsible for the interest accruing on the loan while in school, and during the grace and deferment periods. Any accrued unpaid interest will be added to the principal balance at the time of repayment. Interest is currently fixed at 6.8 percent. Repayment begins six months after graduation or after the student is no longer enrolled at least half-time (6 credit) hours.

The Federal Direct Loan program requires borrowers to complete entrance counseling and a Master Promissory Note prior to having the funds credited to the student's account with the Business Office. These requirements can be completed by going to www.StudentLoans.gov and logging in using the student's SSN and PIN used to sign the FAFSA.

Due to Federal legislation in 2008, all students who file a FAFSA are eligible for an additional $2,000 in Unsubsidized Federal Direct Loan funds each year as well.

Students should consider the long-term effects of excessive debt and borrow only what is needed.