The Federal Direct Unsubsidized Loans are low-interest loans designed to provide undergraduate and graduate students with additional funds for college. The interest rates for these loans are set by the Federal Government. The Direct Unsubsidized Loan accumulates interest while the student is enrolled. The interest rate for graduate Unsubsidized loans for 2018-2019 is 6.6%. The interest rates for graduate Unsubsidized loans for 2019-2020 will be announced at a later date.
The U.S. Department of Education will withhold an origination fee of 1.062% of the total loan amount for all Unsubsidized loans disbursed after October 1, 2018 and prior to October 1,2019.
Borrowers of these Federal Direct Loans have a six-month deferral period following graduation or withdrawal before entering repayment. If a student falls below half-time enrollment, the six-month deferral period will begin.
In order for us to certify and credit your account with the Direct Loan, you must complete a three-step process. A credit for the loan will not be posted to your account until the above three steps have been completed!
- Accept the student loan on the "Accept Award" tab of Net Partner.
- Complete Loan Entrance Counseling. This is a twenty minute online tutorial designed to acquaint first-time Direct Loan borrowers with the rights and responsibilities for the educational loan. * All borrowers are encouraged to complete entrance counseling each year; however only the first-time borrower is required to complete entrance counseling.
- Complete a Master Promissory Note (MPN). As a borrower through the Federal Direct Loan Program, you must complete an application with the Department of Education. * If you have previously borrowed at Warren Wilson College, you will not need to complete a new MPN.