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Financial Aid

Federal Direct Stafford Unsubsidized Loan

 

Questions?

Visit our Loans FAQ.

 

A Federal Direct Unsubsidized Loan is a low-interest student loan offered through the U.S. Department of Education to help students pay for educational expenses.

Unlike a Subsidized Loan, eligibility for an Unsubsidized Loan is not based on financial need. Most students who complete the FAFSA and meet federal eligibility requirements may qualify.

Because this is an unsubsidized loan, you are responsible for all interest that accrues while you are enrolled in school, during grace periods, and throughout repayment. You may choose to pay the interest as it accrues or allow it to be added to the principal balance of the loan.

You can learn more about these loans by visiting the Federal Student Aid website.

Quick Facts

  • Lender -  U.S. Department of Education
  • Current Interest Rate - 6.52%
  • Origination Fee - 1.057%
  • Credit Check Required - No
  • Financial Need Required - No
  • Enrollment Requirement - At Least Half-Time
  • FAFSA Required - Yes

Eligibility Requirements

To receive a Federal Direct Unsubsidized Loan, you must:

  • Be enrolled at least half-time.
  • Complete the FAFSA annually.
  • Maintain Satisfactory Academic Progress (SAP).
  • Be a U.S. citizen, national, or eligible non-citizen.
  • Meet all federal student aid eligibility requirements.

How to Apply

Students are automatically considered for Federal Direct Unsubsidized Loans when they submit the FAFSA.

Next Steps After Receiving a Loan Offer

If a Federal Direct Unsubsidized Loan is included in your financial aid package, complete the following steps to receive your funds.

  • Accept Your Loan through your MyIWU account.
    • Required every year.
  • Complete Entrance Counseling
    • Entrance Counseling explains your rights and responsibilities as a borrower.
    • Required for first-time Federal Direct Loan borrowers only.
  • Complete a Master Promissory Note (MPN)
    • The Master Promissory Note is your legal agreement to repay the loan.
    • Required for first-time Federal Direct Loan borrowers only.

Both Entrance Counseling and the Master Promissory Note must be completed before loan funds can be disbursed. Federal Direct Loan funds are typically disbursed during the second week of each semester, provided all requirements have been completed.

Students are automatically considered for Federal Direct Unsubsidized Loans when they submit the FAFSA.

Before You Graduate or Leave IWU

Federal Regulations require borrows to complete Exit Counseling bfore entering repayment.

Exit Counseling is Required If You:

  • Graduate
  • Withdraw from the University
  • Take a leave of absence
  • Drop below half-time enrollment

Exit Counseling provides important information about repayment options, loan servicers, and borrower responsibilities.

Students who graduate may also be required to attend an in-person exit session. Additional information will be provided by the Financial Aid Office.

Additional Resources

As many students and families are borrowing for the first time, we encourage you to learn more about Federal Direct Loans, repayment options, and borrower responsibilities before accepting your loan. Illinois Wesleyan University receives no financial incentive or benefit for processing Federal Direct Loans.

Helpful Links

Alec Mucha headshot

Alec Mucha - Student Loan Coordinator

Department - Financial Aid