The Federal Direct Subsidized and Unsubsidized Loans are low-interest loans designed to provide undergraduate and graduate students with additional funds for college.  Loans may be Subsidized (based on need), Unsubsidized, or a combination of both.  The interest rates for these loans are set by the federal government and are updated each May for the upcoming academic year.

For the 2021-2022 academic year, loans first disbursed on or after July 1, 2021 and before July 1, 2022 will have an interest rate of 3.73%.  Interest rates for 2022-2023 will be published by the Department of Education at a later date.

The U.S. Department of Education will withhold an origination fee which will be a percentage of the total loan amount for all Subsidized and Unsubsidized loans disbursed.

On or after 10/1/20 and before 10/1/21, loan fee percentage:


On or after 10/1/19 and before 10/1/20, loan fee percentage:


Borrowers of these Federal Direct Loans have a six-month deferral (grace) period following graduation or withdrawal before entering repayment.  If a student falls below half-time enrollment, the six-month deferral period will begin.

Currently, the Federal Government pays the interest that accrues during in-school and grace periods on the Direct Subsidized Loan. Interest will accrue during the grace period and will be capitalized if unpaid by the borrower.

The Direct Unsubsidized Loan accumulates interest while the student is enrolled.

In order for us to process your Direct Loan, you must complete a three-step process:

  1. Accept the direct loans on the "Financial Aid Offer" tab of Net Partner.
  2. Complete Entrance Counseling.  This is a twenty-minute online tutorial designed to acquaint first-time Direct borrowers with the rights and responsibilities for this educational loan. * If you have previously borrowed at Warren Wilson College through the Federal Direct Loan Program, you are not required to complete Entrance Counseling again. However, it is highly recommended that you do so!
  3. Complete a Master Promissory Note (MPN) with the Federal Department of Education. * If you have previously borrowed at Warren Wilson College through the Federal Direct Loan Program, you will not need to complete a new MPN.