The Federal Direct Unsubsidized Loan is a low-interest loan available to students for post-secondary educational expenses. Most domestic matriculated students are eligible for an Unsubsidized Loan each academic year. The Federal Direct loan program is part of the Title IV aid program that offers Federal financial assistance to students and includes, among other funds, the Direct Unsubsidized and Direct Graduate PLUS loan.
The Federal Direct Unsubsidized loan is made to the student who is responsible for repayment. The interest rate for all Direct Unsubsidized Loans disbursed on or after July 1, 2021, and prior to July 1, 2022, is a fixed rate of 5.28%. The Origination fee is 1.057% for loans disbursed after October 1, 2020, and prior to October 1, 2022.
- Obtain a FSA ID. Students will need an FSA ID to complete and electronically sign the FAFSA.
- Complete the Free Application for Federal Student Aid (2022-2023 FAFSA) Boston University’s FAFSA school code is 002130.
- Complete the 2022-2023 Federal Unsubsidized Loan Application (found below)
- First-time BU applicants may be asked to provide their SSN through secure email.
- Submit the Master Promissory Note (MPN)* and Entrance Counseling for your loan (first time BU borrowers only)
You are eligible to participate in the Federal Direct Loan Program if you are:
- A U.S. citizen or permanent resident
- Enrolled in a degree program on at least a half-time basis (or considered at least half-time by your School/College) and credits count towards your degree
- Have not met the cumulative (aggregate) limit for the Federal Direct (formerly Stafford) Subsidized/Unsubsidized loan program of $138,500 for graduate and professional students, including any amount borrowed for undergraduate study.