Federal Direct Unsubsidized Student Loan
UNH students may be eligible to receive federal financial aid (Direct Unsubsidized Loan) to assist financing their education.
Federal Direct Student Loans are fixed, low interest rate loans. These are made to graduate students attending accredited colleges and universities on at least a half-time basis. Students are responsible for paying the interest on a Direct Unsubsidized Loan during all periods. Students are offered the Federal Direct Unsubsidized Student Loan if they have completed the Free Application for Federal Student Aid (FAFSA) and meet federal eligibility requirements.
In order for a Federal Direct Student Loan to be applied to your Bursar account, TWO important steps need to be completed. These steps are completed at www.studentloans.gov using your FSA ID.
Step 1: Student Loan Entrance Counseling
- This is a federal requirement which lets you know your rights and responsibilities as a federal student loan borrower. Student Loan Entrance Counseling is completed at studentloans.gov.
Step 2: Complete Master Promissory Note
- Sign a Promissory Note for your Federal Direct Student Loan. Signing the Promissory Note indicates your commitment to repay the loan you are borrowing. The Master Promissory Note is signed at studentloans.gov.
*The Direct Unsubsidized Student Loan is a federal loan. The U.S. Department of Education does NOT pay interest on this type of loan. The interest rate is fixed at 5.84% as of July 1, 2015 and the interest will start accruing on the date of your first disbursement. There is a 1.072% fee that is deducted from the loan before it is disbursed to the university. Students may pay interest while in school, but have the option to defer paying the interest until the loan goes into repayment. The Direct Unsubsidized Student Loan does not go into repayment until:
- You have dropped below half-time status
- Six months after you leave school (your grace period) and
- During periods of deferment (a postponement of loan payments). A FAFSA must be completed to have your eligibility determined for a Federal Direct Student Loan.
For further billing and payment questions, please contact the Bursar’s office at 203-932-7217.
Eligibility for federal loans will begin once a student has enrolled in a minimum of 3 credits for the session and the Office of Financial Aid has determined their eligibility for federal aid based on their Free Application for Federal Student Aid (FAFSA).
- Maximum Total Loan Amount per Academic Year = $20,500 or up to the cost of attendance.
- Maximum Total Debt from Federal Direct Student Loans (Undergraduate + Graduate) = $138,500 with a maximum $65,500 in Direct Subsidized Student Loans.
* The Federal Direct Graduate PLUS Loan is a supplemental alternative financing option for students. This federal program permits Graduate students to apply for an amount up to their Cost of Attendance minus any financial aid. As such, a student must be considered for their Federal Direct Unsubsidized Student Loan eligibility prior to receiving a Direct Graduate PLUS loan. Eligibility for the Direct Graduate PLUS Loan is based on the borrower’s credit-worthiness. To be approved for this credit-based loan, the student borrower cannot have an adverse credit history. The U.S. Department of Education will run a credit check to determine if you are eligible for the loan. Students denied for this loan may reapply with an “Endorser” (a credit-worthy co-signer). The interest rate is fixed at 6.84% as of July 1, 2015 and has an origination fee of 4.288%.
Private Alternative Loans
Private alternative loans are private, credit-based loans where the student is the borrower. These loans can help bridge the gap between the cost of attendance and the amount of financial aid you receive. Eligibility for private education loans depends on your credit score and may require a credit-worthy co-signer.
Since private loans may have higher interest rates, fees, and varying terms and conditions, we strongly encourage our students to apply for financial aid first in order to maximize their federal student loan eligibility. Private loans may cost more than the education loans offered by the federal government. Typically, private loans have variable interest rates that are pegged to either the Prime Lending Rate or the LIBOR index. Interest on private loans will accrue from the moment a loan is disbursed and repayment normally begins after graduation. Borrowers often have the option to make interest-only payments while in school or deferring and capitalizing the interest until after graduation. You should note that capitalizing interest while you are in school will result in a higher balance due than if you paid the interest.
If you need to borrow a private loan, we remind you that the lender will perform a credit check on you and your co-signer, if applicable. In order to minimize the number of times your credit is checked, you should apply for a loan for the entire academic year rather than prior to each term.
We encourage you to research all your loan options before applying. It is important to note that all lenders can change their loans on a moment’s notice. To find the best alternative loan program for you, CLICK HERE to access the Student Lending Analytics website which offers a dynamic comparison of the top certified private student loans on the market.