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Federal Direct Unsubsidized Loan

A Federal Direct Unsubsidized Loan is a non-need based, low-interest loan with flexible repayment options. It is available to both undergraduate and graduate students.

Did you know you can borrow less than your total loan offer?

 

Wise borrowing means knowing how to figure out how much you need to borrow to cover your expenses and borrowing only that amount. Take a look at this budget example to help you think about your own budget. 

The Department of Education also has information about eligibility, borrowing limits, interest and fees, and repayment information here.

Helpful Tips

After you receive your official financial aid offer, you can work on completing loan requirements. To begin, you should:

Review this checklist for required online processes that you need to complete in order to receive your loan funds.

Compare unsubsidized loans with other types of Federal loans.

Watch this short video, which tells you about the different types of Direct Loans.

What's the Interest Rate?

Your interest rate is determined by the first disbursement date of your loan and your academic level. You can view the latest and previous interest rate information here.

How Much Unsubsidized Loan Can I Borrow? 

Your maximum annual and aggregate borrowing limit depends on your undergraduate grade level and your federally determined dependency status, or your graduate student status. 

Remember that you can borrow less than the maximum amount each year. Doing so will help keep your total debt low.

How Do I Apply?  When and Where Does it Pay?

Once you’ve decided how much federal loan to borrow, you'll need to complete required online processes before the loan can pay (disburse).

You can also print a Federal Subsidized Loan Checklist for Students to help you keep track of your application progress.

To receive a Federal Direct Loan at UC Berkeley, you need to complete required processes by the following deadlines at the latest:

Attending Fall-only: November 30
Attending Fall/Spring or Spring-Only: April 30
Attending Summer Sessions:


Enrollment Periods:                                  Deadline to Complete Loan Process:

Session A Only                                            Friday, June 16, 2017

Any Session ending August 11                        Friday, July  28, 2017

Special Session ending before August 11  Two weeks before end of Session

WHAT YOU HAVE TO COMPLETE

Accept your loan on CalCentral.

Complete a Master Promissory Note (MPN) at studentloans.gov.

Complete Entrance Loan Counseling at studentloans.gov.

WHAT HAPPENS AFTER

After 2 to 3 business days, your Master Promissory Note and Entrance Loan Counseling will be received by the Financial Aid and Scholarships Office.

After verifying that you do not have any holds, that your financial aid application is complete, and that you meet all other basic eligibility requirements, your loan will disburse to your student account.

WHERE DOES YOUR LOAN GO?

Your loan disburses to your student account and pays for any outstanding charges that you have for the term that the loan is disbursed.

If there is no outstanding balance on your student account when the loan is paid, or if your loan disbursement is larger than your balance, you will receive a refund.

If you are going to receive a refund, you will get a notification from Billing and Payment Services.

How Do I Cancel Some or All of My Loans?

Within 120 Days of Disbursement

You have the right to cancel all or part of any disbursement of a Federal Direct Loan without being charged interest or other loan fees as long as the cancellation is processed within 120 days of your loan’s original disbursement date to CARS.

To request a cancellation, go to CalCentral. If you need to access spring or summer 2017 information, please do the following:

Log on to  CalCentral.

Choose the “Loans & Work-Study” link from the left menu bar.

Select “Revise Loan Amounts” and enter your changes.

If the deadline has passed, you will not be able to make a change.

When you cancel your loan by reducing the amount on Cal Central, a charge will be applied to your student account within 2 to 3 business days, which may create a balance due. You are responsible for paying this balance.

Don’t send a payment to your servicer if you cancel your loan. Be prepared to make a payment towards your student bill.

More Than 120 Days After Disbursement

If it has been more than 120 days since your loan disbursement date, you cannot cancel your loan. However, you can make a payment to your servicer. Locate the servicer’s contact information by logging into your National Student Loan Data System account at www.nslds.ed.gov and clicking on the Financial Aid Review button.

In order to ensure that your payment is applied to a particular loan, you must include a letter with your payment that has specific instructions about how to apply your payment.

For example: "Please apply this $200 payment to my unsubsidized loan first disbursed on 01/10/09, paying off any accrued interest and then applying any remaining payment to the principal of that loan."

Where Can I Get Federal Loan Updates?

Read about the latest legal changes that may impact your loans.