The deferment provisions for this loan are contained on the Borrower's Rights and Responsibilities accompanying the promissory note, or you may obtain a copy of them in the Student Business Services Office or from the Direct Loan Servicer. Federal Direct Unsubsidized Stafford Loans. The terms and conditions regarding interest rates, origination fees, and repayment options for Direct Unsubsidized Loans are the same as for Direct Subsidized Loans with the following difference in annual loan limits based on dependency status and grade level. However, the Direct Unsubsidized Loan is not based on financial need. There is no federal interest subsidy for the loan.
Interest accrues immediately.
Borrowers may elect to pay accrued interest on a monthly or quarterly basis or have it added back to the principal balance in a process called capitalization. Eligible students may borrow the cost of attendance less any estimated financial assistance up to the annual loan limits in effect at the time the loan is disbursed. Students will be considered first for the Direct Subsidized Loan prior to consideration for the Direct Unsubsidized Loan. Applicants may receive both Direct Subsidized and Direct Unsubsidized Loans, but the total may not exceed the loan limits outlined above. A parent may borrow up to the annual cost of education minus any estimated financial aid.