You only need to sign one promissory note each year. The second half of your loan will automatically be disbursed according to the schedule listed on your promissory note. Direct Loans have a variable interest rate that is calculated annually. This is deducted proportionately from each loan disbursement. During this time no interest or principal payments are required.
Unsubsidized loans begin accruing interest from the date of disbursement.
Payment of this interest can be postponed through the end of your grace period. Harvard University has been a lender in these programs. As of that date all of our schools will be fully utilizing the Federal Direct Student Loan Program. The terms of these programs are similar. Some of the rates are fixed while others are calculated annually.