DCSIMG

Federal Direct Unsubsidized Stafford Loan

William D. Ford Federal Direct Unsubsidized Stafford loans are not awarded based on a student's financial need. Through this program a student may borrow up to $20,500 annually. The aggregate loan limit is $138,500. The interest rate is 6.8%.  The Unsubsidized interest begins to accrue immediately upon disbursement. The student has the option of paying the interest quarterly or allowing it to accrue while in school. Repayment begins six months after the borrower graduates or is no longer enrolled at least half-time. Federal law requires both entrance and exit counseling for this loan.

             Approximate Monthly Federal Direct
               Unsubsidized Stafford Loan Repayment Schedule

Assume 6.8% Interest Rate

Debt

Monthly payment

Total Paid

$20,500

$238

$  28,596

$41,000

$477

$  57,191

$61,500

$715

$  85,787

$82,000

$953

$114,383

             Assumptions: - 10-year repayment period (120 months)
                                 - No payment incentives