Unsubsidized Federal Direct Loans

Unsubsidized Direct loans are available to students without requiring demonstrated financial need. An unsubsidized Direct loan is not awarded based on need. The term “unsubsidized” means that interest is not paid by the U.S. Department of Education for the student during the “in-school” period.

If the student is an independent student or a dependent undergraduate student whose parents are unable to get a PLUS loan, he or she may borrow up to:

$9,500 if he or she is a first-year student enrolled in a program of study that is at least a full academic year. (No more than $3,500 of this amount may be in subsidized loans.)
$10,500 if he or she completed one year of study and the remainder of the program is at least a full academic year. (No more than $4,500 of this amount may be in subsidized loans.)
$12,500 a year if he or she completed two years of study and the remainder of the program is at least a full academic year. (No more than $5,500 of this amount may be in subsidized loans.)

For periods of undergraduate study that are less than an academic year, the amounts the student can borrow are less than those previously listed. The maximum total indebtedness for an independent undergraduate student is $57,500. (No more than $23,000 of this amount may be in subsidized loans.)

The student is charged an origination fee/insurance premium on the amount of the unsubsidized loan. The fee is deducted proportionately from each disbursement and paid to the federal government.