How to Apply for Federal Direct Subsidized/Unsubsidized Loans
To be eligible for Direct Subsidized/Unsibsidized Loans, you must meet Federal and Penn State Financial Aid eligibility Requirements. In holy order to be eligible, you must :
- not be in default on former federal address loans
How to Apply
You will mechanically be considered for Direct Subsidized and Unsubsidized Loans if you submit the Free Application for Federal Student Aid ( FAFSA ). The loans will be added to your scholar aid Award Summary in LionPATH once awarding begins for the academic year ( February for foremost fourth dimension students and July for returning students ) .
First-time borrowers besides need to complete Entrance Counseling and a Master Promissory Note at studentaid.gov. In most cases, you will alone need to complete these items once during your college career .
Your Subsidized/Unsubsidized loans will appear as a credit on your tuition bill after you complete these requirements .
- Complete your loan counseling requirement by logging
*If you have technical trouble signing the MPN, please contact the U.S. Department of Education ‘s scholar Loan Support Center at 800-557-7394 .
Comparison of Direct Subsidized and Unsubsidized Loans
Direct Subsidized Loan
Direct Unsubsidized Loan
|Based on financial need||Not based on financial need|
|The federal government pays the interest on the loanword while you are enrolled in school at least half-time .||
Interest begins accumulating as soon as funds are disbursed until the lend is paid in wide .
Accrued interest will be added to the balance of the lend. ( You are not required to pay the matter to while you are in school, but we recommend that you do, if potential. )
due to the Bipartisan Student Loan Certainty Act of 2013, direct Loans interest rates will be tied to the fiscal marketplace. Under the new interest rate structure, rates will be determined each June for new loans and will be fixed for the life of the lend. The rates are calculated using a 10-year Treasury Note Index plus an accessory sum for each lend program and include concern rate caps. Learn more about how interest is calculated from the U.S Department of Education .
The watch fix pastime rates are for Direct Loans first disbursed on or after July 1, 2020 and prior to July 1, 2021 .
|Direct Subsidized Loan for undergraduate students||2.75%|
|Direct Unsubsidized Loan for undergraduate students||2.75%|
|Direct Unsubsidized Loan for graduate students||4.30%|
The watch fix matter to rates are for Direct Loans beginning disbursed on or after July 1, 2021 and anterior to July 1, 2022 .
|Direct Subsidized Loan for undergraduate students||3.73%|
|Direct Unsubsidized Loan for undergraduate students||3.73%|
|Direct Unsubsidized Loan for graduate students||5.28%|
The loan origin fee is a fee charged by your lender upon entering into a lend agreement to cover the monetary value of processing the loan. This agreement will be made when you sign the Master Promissory Note ( MPN ) at studentaid.gov. The tip will be taken out of the crying measure of your lend when the funds are disbursed to the school. See examples of net five gross amounts below .
|The origination fee for Direct Subsidized/Unsubsidized loans first disbursed on/after Oct 1, 2019 and before Oct 1, 2020||1.059%|
|The origination fee for Direct Subsidized/Unsubsidized loans first disbursed on/after Oct 1, 2020 and before Oct 1, 2023||
Net vs. Gross Amount of Loan
Your direct Subsidized or Unsubsidized Loan will appear on both the Award Summary and Bursar Tuition Bills section on LionPATH ; however, the lend amounts will be unlike .
The loanword measure on the Student Aid Award Summary is the arrant sum .
The Bursar Tuition Bills department will reflect the net total after the loanword origin fees have been deducted.
once you have accepted your lend, the funds will automatically disburse to your scholar report after classes begin .
You are awarded a $ 2,750 Direct Subsidized Loan for one semester :
- $2,750 is your gross loan amount.
- $2,721 is your net loan amount that will disburse to your student account (gross amount minus the origination fee).
You are awarded a $ 1,000 Direct Unsubsidized Loan for one semester :
- $1,000 is your gross loan amount.
- $990 is your net loan amount that will disburse to your student account (gross amount minus the origination fee).