Federal Direct Unsubsidized Stafford Loans – Financial Aid and Scholarships

Federal Direct Unsubsidized Stafford Loans – Financial Aid and Scholarships

The Federal Direct Unsubsidized Stafford Loan is just not based mostly on monetary want. It is out there to any student who meets the common eligibility necessities for federal assist and has not met their annual or lifetime borrowing limits or exceeding their price of attendance with different sources.

The rate of interest for Federal Unsubsidized Stafford Loans is variable and adjustments yearly on July 1. The curiosity on an Unsubsidized Stafford Loan is your accountability from the time the loan funds are despatched to the college till it’s paid in full. You can decide to permit the curiosity to build up; nonetheless, will probably be added to the principal quantity of the loan and improve the quantity to be repaid. If doable, it’s endorsed that you simply contact the lender to make quarterly funds on the curiosity.

There can be an origination payment that shall be deducted earlier than the loan proceeds are despatched to the college. The origination payment is a processing payment assessed by the Department of Education. Repayment of the loan begins six months after you might be not enrolled a minimum of half time (six credit).

Students should settle for their Federal Direct Unsubsidized Stafford Loan on-line by way of their myUMBC account earlier than it may be thought of as fee towards their invoice. For extra data on how you can settle for the loans on-line, please go to our Loan Acceptance web page.

Stafford Loan Eligibility Requirements

  • You should be assembly Satisfactory Academic Progress (SAP) requirements
  • You should be enrolled for a minimum of six credit every semester
  • You should be working towards a level or accredited certificates at UMBC
  • A present 12 months FAFSA is required
    • If the FAFSA is chosen for verification, all required paperwork should be submitted and reviewed earlier than the loan might be processed
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Accessing the Federal Direct Unsubsidized Stafford Loan

After you full the FAFSA, if you’re eligible for a Federal Direct Unsubsidized Stafford Loan, will probably be included in your monetary assist supply.

If you’re a first-time loan borrower, the next steps should be taken previous to your loan being processed:

In most circumstances, you’ll solely be required to finish the Master Promissory Note (MPN) and Entrance Counseling as soon as throughout their school profession.

If you might have borrowed a loan in a previous 12 months, and have already accomplished each your MPN and Entrance Counseling, the next steps should be taken previous to your loan being processed:

Generally, a federal loan shall be out there all through the tutorial 12 months throughout which is was provided. However, relying upon the time period to which you prefer to the funds to use, precedence processing and ultimate deadlines do apply. For extra data, please go to our Federal Loan Deadlines web page.

Annual Student Loan Acknowledgement

As a Federal Direct Stafford Student Loan borrower, it’s vital so that you can stay totally knowledgeable of your loan borrowing and reimbursement. Effective with the 2021-2022 educational 12 months, it’s strongly inspired that you simply full the federal Annual Student Loan Acknowledgement. The Acknowledgement will inform you of your complete loan borrowing to this point (if any) and help with planning for future borrowing by providing details about estimated month-to-month funds when repaying the loans.  The Annual Student Loan Acknowledgement shall be federally required as of the 2022-2023 educational 12 months.

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Reduce or Cancel a Federal Direct Unsubsidized Stafford Loan

You could cut back or cancel an Unsubsidized Stafford Loan on-line by way of your myUMBC account if it has not but disbursed. If the loan has already disbursed, you must full the Loan Decrease/Cancel Request Form no later than 14 days after you obtain notification that your loan has disbursed.

It is finest to make the changes on-line or submit the shape to our workplace for processing properly earlier than the funds are set to disburse to your billing account with the intention to keep away from issues with the return of those funds.

Federal Direct Student Loan Disclosure Statements

Students receiving any sort of federal direct loan will obtain a Disclosure Statement from the Federal Loan Origination Center for every new loan. The disclosure assertion will present complete details about the sort(s) of loan(s), loan quantities, the loan interval, and anticipated disbursement dates. You ought to save each Disclosure Statement your obtain for future reference, and may entry them on-line at any time by logging in to studentaid.gov together with your FSA ID.