Saint Louis University

Federal Direct Unsubsidized Loan

Who is eligible?

Students must be a U.S. Citizen or eligible non-citizen. Students with a F1 or F2 student visa, J1 or J2 exchange visitor visa or a G series visa are NOT eligible for federal aid.

How much do I qualify for?

Maximum annual loan amount is up to $42,722 for first and second year medical students*, $47,167 for third year medical students and $44,944 for fourth year medical students. Cumulative aggregate limit of $224,000 for Federal Direct Subsidized and Unsubsidized loans. This includes any undergraduate or graduate borrowing from the Federal Direct loan program.

* These amounts are based on a 10 month academic year for First and Second year students, 12 month academic year for Third year students and 11 month academic year for Fourth year students.

How do I Apply?

You must file the Free Application for Federal Student Aid (FAFSA) to determine eligibility for the loan. The Federal Direct Unsubsidized Loan is a non-need based loan funded by The Department of Education. Eligibility is not based on credit history.

What is the interest rate?

On August 9, 2013, President Obama signed into law a reduction of the interest rates on Federal Student Loans. The Direct Loan interest rate for graduate/professional students was reduced from 6.8% to 6.21% for loans processed on or after July 1, 2014.  Interest rates will be established each year for the Direct Unsubsidized Loan for which the first disbursement is on or after July 1 through the following June 30. The rate will be the sum of a uniform "index rate" plus an "add-on" that varies depending on the type of loan and the borrower's level as a graduate/professional.

Are there fees associated with this loan?

Yes, for all Direct Unsubsidized Loans disbursed before September 30, 2014, the loan fee is 1.072%. For all Direct Unsubsidized loans disbursed on or after October 1, 2014, there is a 1.073% loan fee. The loan fee will be proportionately deducted from each of the two loan disbursements by the lender. Here is an example of the new fee structure: for a loan amount of $42,722, each disbursed amount that the University receives on your behalf will be $21,361 (with a fee of 1.72%).

Is there a grace period?

The borrower has a 6 month grace period from the day the he/she graduates or drops below half-time enrollment.

Are there deferment options? 

Direct Unsubsidized Loans are deferred while the student is in-school. There are additional deferment and forbearance options available by visiting www.studetntaid.ed.gov.

What about repayment? 

Standard repayment period is 10* years. However, borrowers have six (6) different repayment plans which can adjust your monthly payments and extend the length of the repayment period. Repayment begins six months after leaving school or dropping below half-time status The minimum monthly payment could be as low as $50**. There is no penalty for prepayment.

*Students who borrow more than $30,000 can extend the standard repayment term from 10 years up to 25 years without loan consolidation. For more information about repayment terms, click here

**Minimum repayment amounts are determined by the total amount borrowed by the student.

To view an overview of this loan and the other types of available loans, click Loan Overview.


For additional information on the Federal Direct Loan Program click here. To access the MPN as well as Loan Entrance Counseling click here.

We are here to assist you; should you have any questions, please do not hesitate to contact us.

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