Direct Unsubsidized Stafford Loan (must be repaid with interest)
Students enrolled in a FAFSA-eligible program at MUD may apply for a Direct Unsubsidized Stafford Loan. The Unsubsidized Stafford Loan is not a need-based loan. The interest rate is fixed for the life of the loan at 2.75% for loans first disbursed July 1, 2020 through June 30, 2021. A loan origination fee will be assessed at 1.057%.
Repayment begins following a six month grace period. The grace period will begin after enrollment ceases or the student drops below half-time enrollment. Minimum monthly payment is $50 per month. Standard repayment period is ten years.
To apply for a Direct Unsubsidized Stafford Loan, the student must first complete a Free Application for Federal Student Aid (FAFSA) which will be used to determine borrower eligibility. The student must also complete a Master Promissory Note. First-time Stafford Loan borrowers must complete entrance counseling. All students who borrow a Stafford Loan are required to complete exit counseling.