Loans – Federal Direct Loans for Graduate Students
The Federal Direct Unsubsidized Loans are low-interest loans designed to provide undergraduate and graduate students with additional funds for college. The interest rates for these loans are set by the Federal Government. The Direct Unsubsidized Loan accumulates interest while the student is enrolled. The interest rate for graduate Unsubsidized loans that are disbursed on or after 7/1/2014 is 6.21%.
The U.S. Department of Education will withhold an origination fee of one percent (1.073%) of the total loan amount for all Unsubsidized loans disbursed after July 1st, 2014.
Borrowers of these Federal Direct Loans have a six-month deferral period following graduation or withdrawal before entering repayment. If a student falls below half-time enrollment, the six-month deferral period will begin.
Interest will continue to accrue on loans disbursed after 07/01/2012 through the deferral period.
In order for us to certify and credit your account with the Direct Loan, you must complete a three-step process. A credit for the loan will not be posted to your account until the above three steps have been completed!
- Sign and return requested paperwork.
- Complete Loan Entrance Counseling. This is a twenty minute online tutorial designed to acquaint first-time Direct Loan borrowers with the rights and responsibilities for the educational loan.
* All borrowers are encouraged to complete entrance counseling each year; however only the first-time borrower is required to complete entrance counseling.
- Complete a Master Promissory Note (MPN). As a borrower through the Federal Direct Loan Program, you must complete an application with the Department of Education.
* If you have previously borrowed at Warren Wilson College, you will not need to complete a new MPN.