Direct Unsubsidized Loan
We strongly recommend that all U.S. citizens and permanent residents apply for federal student loans before pursuing other loan options. Student must be enrolled at least half-time (6 credits) to qualify for the Federal Direct Unsubsidized Loan. Interest begins accruing at the time of the loan disbursement. Students can elect to pay the interest while in school or have it capitalized into a repayment schedule that starts six months after you leave school. The Standard Repayment term extends up to 10 years, with deferments available during unemployment, economic hardship, or continued education. Loan funds are issued in two disbursements each year, typically timed to coincide with the start of each semester.
The interest rate for all Direct Unsubsidized Loans disbursed on or after July 1, 2023 and prior to July 1, 2024 is a fixed rate of 7.05%. The origination fee is 1.057% for loans disbursed after October 1, 2020 and prior to October 1, 2024. Please note:
- Students are eligible to borrow up to $20,500 per academic year
- Students must remain enrolled at least half-time (6 or more credits)
HOW TO APPLY
Summer financial aid is a separate process. A student may be eligible to borrow the Federal Direct Loan for the summer term if the student did not borrow all of their annual loan limit during the prior academic year or will not be borrowing the annual loan limit for the coming academic year due to attendance for only one semester.
Graduate students are eligible to borrow up to 20,500 for an academic year. If you are enrolling in a summer semester, the amount borrowed will be placed against that annual limit. The remaining amount will be divided equally between the fall and spring semesters.
In addition, a student is eligible to borrow if the summer term is the student’s final enrollment period. Students must also be enrolled at least half-time (six credit hours) over the course of both summer sessions to be eligible.
Be sure to complete the 2023-2024 FAFSA prior to completing Summer 2023 loan application.
Central office (BU Office of Financial Assistance) process Summer loan applications, therefore there may be delays depending on volume.
*Loan eligibility cannot be determined until you are registered for the summer session. It is important that your request be submitted as soon as possible after registering for your summer classes. Your application will take approximately seven to ten business days to process once our office begins reviewing loan requests in early April.
Fall 2023/Spring 2024
- Obtain a FSA ID. Students will need a FSA ID to complete and electronically sign the FAFSA.
- Complete the Free Application for Federal Student Aid (2023-2024 FAFSA) Boston University’s FAFSA school code is 002130.
- Complete the 2023-2024 Questrom Unsubsidized Direct loan request 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)
*Be sure to complete the first option given, “MPN for Subsidized and Unsubsidized Loans”. The Graduate PLUS MPN is specifically for the Graduate PLUS Loan and not the unsubsidized loan.
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